According to the bank’s June data, this is the first time that card spending values have decreased since February 2021.
The data is combined with consumer research and accounts for about 40% of credit and debit card transactions in the country.
The combination of lower inflation and early-month rainy weather has caused prices to rise more slowly than they had earlier in the month, which has affected sales of clothing, pubs, and garden centers.
Spending using supermarket cards fell as well, for the first time since June 2022, or two years ago.
Barclays attributes this to both substantial declines in food inflation and consumer spending cuts.
The majority of consumers (65%) stated they are reducing their weekly grocery budget, and over half are searching for savings from loyalty programs and other retail offers.
The likelihood of an interest rate reduction in the next months has increased as UK inflation has decreased to 2%.3:11
Due to the weather, two out of every five Britons reported spending less than normal on summer goods, with clothing being the most frequently decreased expense.
However, the entertainment sector saw increase, and on June 15, the day following the release of Disney Pixar’s Inside Out 2, movie theaters experienced their busiest day of the year.
With the debut of new seasons of shows like Bridgerton and House of the Dragon, more money was spent on takeout and streaming services.
