Barclays: Summer raised consumer spending to 13-month highs
Data from Barclaycard, which processes nearly half of all the nation’s credit and debit card transactions, showed that consumers change little with regards to spending their disposal income following the outcome of the EU Referendum.
The figures showed that as consumers were greeted by warmer weather they spent their time leisurely on updating their summer wardrobes and making home and garden improvements. Pubs (13.3 per cent) and restaurants (12.7 per cent) both saw an uplift and clothing spend jumped 3.4 per cent, up from 1.5 per cent in July.
Spending at garden centres and DIY stores increased 9.5 and 4.5 per cent, respectively, rounding out a great showing for in-store spending growth, which was lifted to 1.4 per cent – the highest figure in 14 months.
Caution still lingers, however, for many consumers: despite the August rise in spending, only 58 per cent of consumers express confidence in their household finances, significantly lower than the average of 71 per cent recorded in 2015. In addition, long-term forecasts for rising prices and subdued wage growth may be responsible for just four in 10 (38 per cent) consumers saying they are confident in the UK economy.
Paul Lockstone, Managing Director at Barclaycard, said: “Consumer spending has continued to grow after the EU referendum, with August being a particular stand-out month considering confidence in household finances remains low compared to levels seen last year.
“Spending peaks in travel and hotels indicate that most consumers were firmly commited to their summer plans, and spent on trips and excursions they booked months in advance. Yet confidence continues to be shaky as the wider economic picture remains uncertain, suggesting it’s too soon to tell if this lift in spending will last once everyone’s holiday tans have faded.”
