Table of Contents
- Debit and credit card spending fell 0.3% year-on-year in July
- People said rainy weather resulted in less ‘summer spending’
- On the day of the Euro final, spending in pubs, bars and clubs was almost triple
Wet weather caused spending on consumer cards to fall in July, although the European Championship final provided a huge boost to pub and bar revenue.
Spending on debit and credit cards fell 0.3 percent year-on-year in July, according to the latest Barclays Consumer Spend report.
The figure represented a marginal improvement from June, when spending fell 0.6 percent, but was considerably lower than the latest CPI inflation rate of 2.8 percent.
It’s raining: Debit and credit card spending fell 0.3% year-on-year in July due to bad weather, according to Barclays
Two in five consumers said July’s bad weather prompted them to cut back on “summer spending.”
This resulted in customers cutting their spending by an average of £133.40, with those aged 18 to 34 cutting their spending the most at £158.40.
The Euro Cup final triples spending on…
Pubs, bars and clubs saw spending rise 4.9 per cent in July, the biggest growth for the category since January, helped in large part by England’s progress to the European Championship final.
On the day of the final, July 14, payment transactions in bars and pubs tripled by 195.6 percent compared to the previous year.
Essential spending rose 0.6 percent after declining 0.9 percent last month.
The report also showed that 48 percent of Britons cut discretionary spending, with spending on non-essential items down 0.7 percent.
Big takers: Euro final between England and Spain led to increased spending at the pub
…But cinemas are left behind by the Barbenheimer mania of 2023
Entertainment figures were shaken with a 6.1 percent year-on-year drop after a strong performance in ticket sales for the ‘Barbenheimer’ and Eras Tour in July 2023.
Retail trade figures for July showed signs of improvement with a 1.1 percent drop compared to a 2.6 percent decline in June.
The loss was partially offset by a 6.4 percent increase in spending on health and beauty.
Consumer spending at specialist food outlets such as butchers and fruit shops also rose by 3.5 percent, the highest level since January.
The increase shows that the small number of sunny days in July encouraged customers to buy barbecue ingredients to cook at home, a positive sign ahead of warmer days ahead.
Clothing purchases also showed new signs of life, falling just 2.3 percent, a significant improvement from the 7.7 percent decline in June.
House of the Dragon gives a boost to streaming
Boost: Matt Smith in House of the Dragon, which caused a surge in streaming spending
Digital and streaming platforms saw an 11.1 per cent rise in July, up from 9.2 per cent in June, as viewers flocked to watch the new series of Game of Thrones spin-off House of the Dragon, available on Sky Atlantic and Now TV.
Overall, confidence in the UK economy improved by five percentage points in July, reaching 32 percent, the highest level since February 2022.
Karen Johnson, retail director at Barclays, said: ‘It’s encouraging to see seasonal staples such as barbecue supplies, beauty purchases and holiday planning showing signs of a steady recovery.
‘Despite England losing in the Euro final, British hospitality emerged as a real winner as the Euros provided a boost for pubs, bars and clubs.
‘With the final days of the Olympics in Paris coming to an end, Taylor Swift returning to a sold-out Wembley Stadium for the final dates of her Eras Tour in the UK and a heatwave on the horizon, we expect summer spending to end with a bang in August.’
Jack Meaning, Barclays’ chief UK economist, added: “While the weather, sporting events and concerts appear to have resulted in seasonal fluctuations, the overall picture is that consumers are seeing their incomes and spending power rise and are more confident about the overall economic outlook.
‘This, added to the fact that the The Bank of England has begun to reduce interest ratesshould translate into stronger underlying spending growth as we move into the second half of this year and into 2025.
