Spending on household goods increased by 1.2 per cent in September, according to new figures from Barclays, although concerns ahead of the Autumn Budget are prompting consumers to cut back on non-essential purchases.

The latest Barclays Consumer Spend report revealed that overall card spending grew by 2 per cent year-on-year in September, slightly below August’s 2.1 per cent increase and behind the latest CPIH inflation rate of 3.3 per cent.

Within the household category, spending increased by 1.2 per cent, with garden centres recording the strongest growth at 3.5 per cent. Furniture stores and electronics retailers both saw spending rise by 1 per cent, while Home Improvements and DIY increased by 1.2 per cent.

General retailers and marketplaces performed particularly well, recording a 4.4 per cent increase in spending. However, department stores experienced a 1.2 per cent decline, highlighting the mixed picture across the retail sector.

Overall retail spending grew by 1.1 per cent, while non-essential spending increased by 1.8 per cent, compared with a 2.5 per cent rise in essential spending.

Despite the relatively modest growth, consumer confidence in household finances reached a seven-month high of 67 per cent, up from 66 per cent in August.

Confidence in consumers’ ability to live within their means also improved, rising from 71 per cent to 73 per cent, while confidence in job security edged up to 45 per cent.

However, uncertainty surrounding the Autumn Budget on 28 October continues to weigh on spending decisions.

Almost seven in 10 consumers (68 per cent) said they were concerned about the Budget’s potential impact on their household finances, while 61 per cent were worried about possible tax changes.

As a result, 30 per cent reported reducing their non-essential spending, while 27 per cent said they were delaying major purchases and important financial decisions until after the Budget.

A quarter of consumers (25 per cent) were also building up a precautionary savings buffer.

For Housewares and Homeware retailers, the figures suggest that shoppers remain willing to spend, although larger purchases may be affected by continued financial uncertainty.

Elsewhere, hospitality and leisure spending grew by 2.7 per cent, supported by September’s warmer weather. Restaurants, cafés and bakeries recorded a 2.1 per cent increase, while spending in bars, pubs and clubs rose by 3.8 per cent.

Digital content and subscriptions also performed strongly, with spending increasing by 7.8 per cent, as consumers continued to balance going out with evenings at home.

Rohan Kumar, Head of Spend Insights at Barclays, said: “Spending maintained momentum in September, with growth across both essential and non-essential categories as confidence in household finances reached a seven-month high.

“Warmer weather supported another strong month for hospitality and leisure, while the rise in digital subscriptions suggests consumers are balancing socialising with autumn nights at home, even as pre-Budget uncertainty keeps value and careful decision-making front of mind.”

Jack Meaning, Chief UK Economist at Barclays, added: “The caution felt by consumers ahead of the Budget mirrors what we have also seen in our surveys of UK businesses.

“This should reinforce the importance of the Chancellor delivering clarity and confidence from the dispatch box on 28 October.”

The report combines Barclays debit and credit card transaction data with consumer research conducted by Opinium among 2,000 UK adults.

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