Consumer card spend inches higher, but streaming and cinema sales jump

(Sharecast News) - Consumer card spending saw subdued growth in January, according to Barclays data on Wednesday, though spending on entertainment and online retail performed strongly as a result of the cold weather. Spending across Barclays debit and credit cards - which account for nearly 40% of the UK's overall transactions - increased by just 0.8% last month, well below the latest CPIH inflation rate of 3.6%.

Essential spend fell for the sixth straight month, declining 1.1%, while discretionary spend grew by 1.6%, powered by a 5.7% jump in online retail.

With the wet and wintery weather increasing people's time spent at home, screentime jumped, with spending on digital content and subscriptions surging 9.3% compared with last January, helped by a string of hyped releases across streaming platforms including Heated Rivalry and Stranger Things, Barclays said.

According to the survey, some 35% of consumers said they watched more TV and films in January due to the cold weather and dark evenings, with entertainment categories overall seeing an 8.3% year-on-year increase in spending, helped by a strong showing in cinema transactions.

Barclays' consumer confidence survey showed that sentiment remained steady about household finances (66%), the ability to live within means (71%) and the strength of the economy (24%), though confidence about job security eased from the month before (to 43% from 46%).

"Improving consumer confidence is absolutely key to the UK's economic outlook in 2026. With that in mind, the stabilisation in this month's survey is an encouraging step in the right direction," said Barclays' chief UK economist Jack Meaning.

"With inflation set to fall quickly in the coming months, interest rates on course to ease and some early signs of resilience in wider activity, the scene is set for confidence to pick up, supporting growth in spending as the year goes on."