- This is Money has exclusive access to Mastercard data
Spending on holidays and home improvements rose sharply over the early May bank holiday, Mastercard spending data seen by This is Money reveals.
Holiday spending in Dorset was 29 per cent higher year-on-year during the period, while it rose 24 and 13 per cent in Cornwall and Devon respectively.
Spending on accommodation in London rose 11 per cent over the bank holiday, according to the latest data from Mastercard SpendingPulse.
Spending on staycations: Spending on staycations and home improvements rose sharply over the early May bank holiday, data seen by This is Money reveals
As consumers prioritized experiences over “things” over the bank holiday, retail sales fell 0.6 percent compared to a year ago.
According to the results, consumer confidence has reached its highest level since December 2021.
Restaurant spending rose 5.6 percent year-on-year during the period.
In Dorset, Cornwall and Devon, restaurant spending increased by 33 per cent, 9 per cent and 11 per cent year-on-year respectively.
The data suggests the amount of money people spent in restaurants in London during the period grew by 1.6 per cent year-on-year.
As well as spending more on hospitality businesses, Britons also took advantage of the early May bank holiday to spend money on home improvements.
There was a 3 per cent increase in spending on home improvements over the period, while spending on furniture and fixtures rose 10 per cent.
Spring renovation hotspots included Devon, where there was a 25 per cent increase in spending on furniture and home accessories, and Cornwall, with a 17 per cent increase.
Natalia Lechmanova, chief European economist at the Mastercard Economics Institute, told This is Money: “As we head into what we hope will be warmer months, people have been making the most of free time over the holiday weekend to Spend time exploring different parts of the UK, eating out at restaurants and renovating your homes for the summer.
“A trend we are seeing in almost all regions of the UK is an increase in spending on experiences over things, with consumer confidence and purchasing power on the rise, and a summer of big events ahead, including Taylor Swift’s European tour.
‘However, as consumers now benefit from greater purchasing power, some discretionary spending is also being channeled into “stuff.”
“This can have a positive impact that is likely to be seen not only in the UK economy, but across Europe as a whole.”
The Consumer Price Index rose 2.3 per cent in the year to April, up from 3.2 per cent in the 12 months to March, Office for National Statistics data published last month showed. The next batch of official inflation figures will be published on June 19.