World Cup and staycations drive July increase in consumer spending

Consumer confidence has hit a 21-month high after spending in pubs and staycations drove growth in July.

Data from Barclays showed the World Cup delivered a 10% surge in spending at bars, pubs and clubs during July, while the wider hospitality and leisure sectors recorded a 2.2% boost.

The accommodations sector saw a 2.6% uptick, as holidaymakers looked towards staycations, with airline spend declining.

Confidence in the strength of the UK economy reached 30 per cent in July – representing a 21 month-high and a six per cent improvement on June.

Barclays has said consumer confidence has also increased with people reporting increased confidence in their job security and their ability to spend on non-essential items.

Confidence in spending on non-essential items grew from 51% to 53% between June and July, up from a low of 49% in April.

Rohan Kumar, head of spend insights at Barclays, said: “Card spending strengthened further in July, reaching its highest level for 12 months, with both essential and non-essential spend remaining in growth. Multiple factors played a part, with UK staycations, continued warm weather and England’s World Cup run lifting spending on travel, hospitality, everyday essentials and seasonal retail categories.”