Card spending grew 2.0 per cent in September, according to Barclays’ latest Consumer Spend report. This was slightly lower than August’s 2.1% growth, and below the latest CPIH inflation rate of 3.3%.

The increased spending was driven in part by consumers spending more on fuel as diesel prices soared. A 17.3% uplift in fuel spending drove a 2.5% increase in essential spend.

Overall, essential spending increased 2.5%, outpacing the 1.8% increase in non-essential spending. With warm weather continuing throughout September, continued demand for meals and drinks out supported hospitality & leisure’s 2.7% boost.

Within retail, clothing spend growth fell 1.3% although transaction growth increased by 3.8%. Supermarkets also experienced a retraction in spend growth of 0.8%, although food & drink specialists enjoyed growth of 6.3%. Elsewhere, household and DIY enjoyed spend growth of 1.2%, general retail grew by 3.6%, and specialist retailers (including beauty, pharmacy and sports) grew by 2.6%.

Confidence in household finances was at 67%, the highest so far this year, while confidence in job security remained relatively low at 45% and consumers’ ability to live within their means climbed 2% month-on-month to 73%. Confidence in the UK economy is at 26%, a 4% drop from the year’s most confident month, June (30%). However, figures have remained fairly consistent for the year so far, with only small increases or decreases month-on-month.

The Autumn Budget is impacting consumer confidence, with nearly seven in 10 consumers (68%) reporting concern about the potential impact on their household finances, while 61% are concerned about possible tax changes.

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