11 December 2023 , 14:12
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Shoppers are still spending a fortune in the UK despite the cost-of-living crisis, according to data from Lloyds Bank.
Every region in the UK, including Scotland, Wales and Northern Ireland, is spending more on non-essentials like holidays, restaurants and recreational activities but London is the slowest-growing region for this type of spending.
Lloyds Bank has revealed the data following the launch of its new credit card, the World Elite Mastercard. The analysis, based on card spending of the bank’s customers, provides live insight into the state of the nation. Non-essential purchases – like holidays and restaurant spending – have been in positive growth, year-on-year, since May 2021.
In 2023 alone, year-on-year non-essential spending has grown more than 3% every single month, peaking at a 10% increase in January.
The data indicates the trend is largely being driven by wanderlust – particularly amongst the over 65s, who have increased spending in this category by 21% in October. Millennials (people aged 25 to 34) meanwhile, are displaying the slowest growth among generational holiday spenders year-on-year, up 11.8%, while Gen Z consumers (aged 18 to 24) have seen holiday spend grow 16.9% over the last year.
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Taking a regional view, consumers in Wales are leading the charge in holiday spending - up by more than a fifth compared to last year (21.6%), while Scottish holidaymakers and those in the South West have increased travel card spending by 19.5% and 19.1% respectively.
Spending from people living in London shows the slowest growth at 12.5%, with those in the North West spending 16.5% more year-on-year.
The data also shows that spending on restaurants and going out to socialise account for the biggest non-essential spending growth across all generations and all regions across the UK in October.
Marc Lien, Credit Cards Managing Director at Lloyds Bank, said: “Despite understandable concerns around the cost-of-living crisis, people still want to socialise and have a holiday to look forward to. We’ve come through a challenging few years, and it’s positive to see that consumer spending is on the rise.
“After listening to our customers it’s clear that spenders up and down the country want more from their credit and debit card providers, and this is more important than ever at times like these – that’s exactly why we launched the Lloyds Bank World Elite Mastercard."