Tuesday 8 November 2016 6:14 am

Consumer spending grows at record levels during October

Oliver Gill is a City A.M. reporter, you can contact him on oliver.gill@cityam.com

Oliver Gill is a City A.M. reporter, you can contact him on oliver.gill@cityam.com

Consumer spending rocketed during October with Britons splashing out on visits to the cinema and drinking sessions in the pub.

Spending grew at the fastest recorded levels during October according to Barclaycard. The 5.5 per cent year on year increase was driven by 20.9 per cent growth in movie going and a 12.9 per cent increase in spending in the pub. The more general entertainment category spend grew by 12.7 per cent.

Read more: Essential item spending grows as consumers buy more food, drink and petrol

The October growth was not just down to splurging out on extravagancies though. Petrol spending increased by 6.6 per cent due to rising prices at the pumps. Meanwhile supermarket spending, which has been somewhat subdued in recent months, grew by two per cent, compared with the 0.6 per cent growth in September.

Paul Lockstone, a managing director at Barclaycard said another reason for the spending growth was because of concerns about the inflationary impact of the sterling's slump.

Barclaycard's research indicated that 81 per cent of shoppers expect that changes in inflation over the next 12 months will affect the cost of everyday goods.

“The backdrop of ‘hard Brexit’ headlines, the weakening pound and high profile issues such as Marmite-gate mean consumers are starting to worry about the impact of inflation on their everyday lives. As we approach Christmas, an expensive time in many households, many consumers are telling us they plan to rein in their spending to ensure they are able to make ends meet," he said.

Read more: Consumer spending eases back after summer splurge

Clothing spending growth contracted in September by 1.8 per cent but bounced back in October, swelling by four per cent. Barclaycard said this was as a result of the public investing in a winter wardrobe as temperatures across the country edge down.