UK households turn to TV subscriptions as they cut back on nights out
UK consumers cut back on groceries, clothes shopping and eating out last month but streaming and pay TV subscriptions jumped as cash-conscious viewers switched to nights in.
The return of big hit series such as Succession, The Mandalorian and Ted Lasso fuelled a healthy 4.1% increase in spend on digital content and subscriptions in March, the highest year-on-year rise in five months, according to Barclays’ regular snapshot of consumer credit and debit card use.
However, consumers seeking to balance household budgets cut back going out to restaurants, which resulted in monthly spend falling 5.6%, while spend in clothing stores fell 3.4% – the sharpest drop in six months.
Overall consumer card spending – which includes spending in shops but also on travel, hospitality and other services – rose by only 4% in March compared with a year ago, significantly below the current official annual rate of inflation of 10.4%.
Barclays, which processes almost half of UK credit and debit card transactions, said soaring household bills had led to more than half (54%) of consumers cutting back on discretionary spending. That echoes the findings of a report by the accountants KPMG earlier this month that found almost two-thirds of UK consumers had cut back on the amount they spent eating out since the start of the year.
The Barclays report also highlights strategies shoppers are using to cope with food price inflation running at more than 18%, its highest level since August 1977.
Spend on groceries rose 7.1% last month – less than half that rate – with 53% of consumers choosing to cut back on luxuries or one-off treats. More than a third (38%) told Barclays they were advance planning meals to avoid wasting food or using vouchers to reduce grocery
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