Click here to view the original article ‘Consumer spending up 5% as consumers make the most of the summer’

 

Consumer spending rose 5.0% year-on-year in July, marking the third consecutive month of growth surpassing 5%, according to new data from Barclaycard.

The figures reveal that essential spending climbed 8.7% in July, driven by a 6.7% growth in supermarket spending, while petrol expenditure grew 13%.

The survey found that 50% of consumers are buying more food and drink than normal to enjoy barbecues and picnics with friends and family.

However, the figures revealed that shoppers remain cautious about the broader economic picture with confidence in household finances dropping six percentage points from June to 59% last month.

Rising interest rates are another area of concern for some, according to the data, with 34% saying they are worried that the Bank of England raising interest rates means they will have less spending money each month.

Esme Harwood, director at Barclaycard, said: “The prolonged warm weather combined with England’s World Cup performance has created a short-term boost in spending. With the sunshine showing no sign of abating, spending levels have remained higher than we would normally expect with Brits keen to make the most of the heatwave – whether in the pub over a few drinks or stocking up at the supermarket to enjoy a barbecue.

“It will be interesting to see if this strong level of growth continues as we move into the final stretch of summer. It’s clear that some consumers remain cautious about what’s to come with interest rates rising and overall confidence in household finances down slightly from June.”