4.9% uplift in July consumer spending
The increase was put down to football fans flocking to hospitality venues to watch the final rounds of the Euros tournament, according to Barclays’ latest Consumer Spend report.
Despite England’s loss against Spain in the final, the match led to payment transactions almost tripling at pubs and bars on Sunday 14 July – this was a 195.6% hike year on year.
It also marked the busiest Sunday of the year for pubs, with transaction volumes up 92.9% compared to the average Sunday this year.
Highest level
Elsewhere, the report showed confidence in the UK economy improved by five percentage points in July to 32% – its highest level since February 2022.
However, confidence in household finances and the ability to live within means both dropped at 65% (down two percentage points) and 70% (down three percentage points) respectively.
Barclays head of retail Karen Johnson said: “Shoppers and retailers alike will be ready to see the end of the summer showers.
“It’s encouraging to see seasonal staples such as barbecue supplies, beauty buys and holiday planning delivering signals of steady recovery.
“Despite England losing in the nail-biting final of the Euros, UK hospitality emerged as a true winner, when the Euros delivered a boost for pubs, bars and clubs."
Strong spending hopes
Johnson added: “With the final days of the Olympics in Paris, Taylor Swift’s return to sold-out Wembley Stadium for her final UK Eras tour dates and a heatwave on the cards, we hope summer spending will finish strongly in August.”
Barclays chief UK economist Jack Meaning was optimistic about the figures and what this means for the future.
He said: “While weather, sports events and concerts all look to have resulted in seasonal fluctuations, the bigger picture is consumers are seeking their incomes and spending power rise and are becoming more confident in the overall economic outlook.
“This, coupled with the fact the Bank of England has begun to reduce interest rates, should translate into stronger underlying spending growth, as we move through the second half of this year and into 2025.”
