Consumer spend data collected by Barclaycard suggests that figures have reached its lowest point in 10 months.
In May, consumer spending fell by 2.8% when compared to last year’s figures.
The data also showed that consumers held back on material purchases and put their money towards more experiences.
Results showed that just 53% of consumers felt confident in their household finances, compared to 70% in March, a possible response to inflation.
The expenditure on “everyday essentials” grew by a marginal 3.1% when compared to the Easter-driven increase in April of 11.4%. Spending on household goods and clothing fell by 2.9%.
Spending on hotels also increased by 11.4%, as consumers planned their summer breaks. Consumer confidence research by Barclaycard suggests this is likely to continue, as 34% of Brits indicate they prefer to spend on experiences rather than on physical items.
Paul Lockstone, managing director, said: “Consumer spending growth was subdued last month as shoppers paused for breath after an Easter bounce in April. With CPI running at its highest rate since 2013, it’s no surprise that more of us are starting to ‘feel the squeeze’ of inflation and slower wage growth, perhaps prompting small changes to our spending patterns.
“It’s far too early, however, to suggest that this is the beginning of a period of increased caution. In May, we witnessed the resilience of the ‘experience economy’ and all signs indicate spending on leisure time will continue to be a priority.”
He added: “As we head into summer, it will be interesting to see how the spending picture might change after consumers reassess their household budgets.”