The spending research is based on consumer card spending data using Barclays debit card and Barclaycard credit card transactions
The success of shows like Baby Reindeer has led to a surge in spending on digital subscriptions, according to Barclays.
New TV series such as Netflix’s Baby Reindeer, which stars comedian Richard Gadd, and Ripley, featuring Andrew Scott as an antihero immersed in a world of wealth and privilege, have contributed to an increase in expenditure on digital content and subscriptions.
Barclays suggests that popular shows, coupled with increased subscription fees and stricter password sharing rules implemented by some streaming companies, are behind a 10.6% rise in spending on digital content and subscriptions The spending research is based on consumer card spending data using transactions from Barclays debit cards and Barclaycard credit cards.
It compares the period from March 23 to April 19, 2024, with the period from March 25 to April 21, 2023. Spending on entertainment generally grew by 3.2%, as families enjoyed the half-term break.
Growth in spending on takeaways and fast food remained steady, at 3%, according to Barclays. A survey conducted by Opinium for Barclays in April found that nearly three-quarters (73%) of people are actively seeking ways to cut down the cost of their weekly shop the highest percentage since Barclays began tracking these figures in January 2023.
The majority of shoppers (60%) have noticed that supermarket shelves are looking a bit bare, with fruit and veg, along with eggs and dairy, being the hardest hit. Yet, despite these shortages, a 71% of people surveyed are confident about managing their household finances.
There’s been a slight uptick in consumer confidence, with 74% of people now saying they’re comfortable living within their means that’s a 2% increase from last month. Retail spending has taken a tiny dip of 0.1%, according to Barclays, marking the first time we’ve seen a drop since the leaves started falling last September.
The chilly April weather didn’t help, putting a bit of a freeze on high street shopping. But it’s not all doom and gloom on the high street with pharmacies and beauty shops sales going up by nearly 5%.
Barclays’ retail expert Karen Johnson said: “Retailers were hopeful that discretionary spending would bounce back by mid-year, buoyed by falling inflation and the prospect of better weather. While improving consumer confidence offers a ray of hope for the retail and hospitality industries as the summer season approaches, many retailers have adjusted their expectations, anticipating no real recovery until the autumn.”
Jack Meaning, the chief UK economist at Barclays, said: “Given the long squeeze consumers have faced, it may take time for this to translate into stronger discretionary expenditure, but easing interest rates in the second half of this year should spur consumers’ confidence and spending.”
