LONDON Reuters consumer spending picked up in November, boosted by earlier than usual Christmas shopping and a recovery in spending at pubs and restaurants before the news of the Omicron variant of the coronaviruses, industry surveys showed on Tuesday.
The British Retail Consortium, a trade body representing major high street retailers, said in November total sales were 5.0% higher than a year earlier, the biggest annual increase since July and up from an increase of 1.3% in October.
Consumer spending - which includes things like eating out and traveling, as well as shopping -- was 16.0% higher than in November 2019, according to separate credit and debit card data from payments provider Barclaycard.
In Britain, consumer demand has been relatively stable because of the pandemic, as household incomes were supported by government measures. There have been big shifts within the sectors, with a large chunk of retail spending moving online, and only partially reversing when shops are reopened.
Travel remains depressed, with spending on plane tickets 22.1% less than its level two years ago. Restaurant spending was down 4.3% compared to November 2019 compared to an 8.3% shortfall in October, according to Barclaycard data.
Non-essential spending increased at a faster rate since the start of the epidemic, up 17.7% from two years ago.
The Bank of England is considering whether to raise interest rates next week, as households' disposable income will become more squeezed in the coming months, as inflation picks up further and payroll taxes rise from April.
Helen Dickinson, BRC's chief executive, said November's boost in spending was reflected by Black Friday sales promotions beginning earlier in the month.
She said that consumers switched their focus on Black Friday from electronics and household appliances as they prepared for the cold weather this winter.
Like-for-like sales, a measure that adjusts for changes in retailers' floor space, was 1.8% higher than a year ago, compared to a 0.2% drop in October.
Four in 10 consumers said they were doing their Christmas shopping earlier than before, according to Barclaycard.
The arrival of Christmas markets and lights across the UK brought some festive cheer to retail, leisure and hospitality sectors in November, while the return of darker nights and colder nights saw Brits spend more on at-home pursuits, according to Barclaycard executive Jose Carvalho.