September was another reminder that the UK consumer is still watching the pennies.
According to Deutsche Bank’s read of Barclaycard data, overall spending fell 0.7% year on year, the first decline since the spring, as households trimmed both essential and discretionary purchases.
Retail spending dipped 0.1%, reversing August’s modest gain, while travel and leisure also slowed sharply.
The supermarket aisle remains under pressure, with grocery sales down 1.7% as shoppers continued to trade down and cut back. Non-food retail held up slightly better, rising 1.2%, but that too marked a slowdown from August’s 2.4%.
Clothing managed a small 2.1% increase, though sportswear and outdoor goods were notably weaker, off 3.4%.
The pattern within the home categories tells a familiar story. Furniture sales rose for the tenth straight month, up 7.5%, but demand for DIY and home improvement slipped again, reflecting less appetite for big-ticket projects.
Electrical goods and discount stores also saw sharper declines, hinting at further strain among middle- and lower-income shoppers.
Online channels fared marginally better, up 0.4% compared with store sales down 1.6%. For now, the overall message is clear: Britons are spending, but selectively... and more cautiously with each passing month.