Heatwave and World Cup boost consumer spending in July

Consumer spending rose 5% year-on-year in July, according to the latest figures from Barclaycard, boosted by the heatwave and the World Cup.

Essential spending was up 8.7% last month, with supermarket spending 6.7% higher and spending on petrol up 13%.

Meanwhile, pub spending rose 16.8% - the biggest jump since April last year - rising a whopping 73% on the day of England's semi-final against Croatia in the World Cup.

Almost a quarter of consumers said the hot weather had prompted them to spend more money than usual on experiences and outdoor activities, while women's clothing also benefited from the heat, with spending on that up 4.5% as shoppers updated their wardrobes.

Spending at garden centres increased 8.1%, while spending at amusement parks rose 8.4% last month.

Despite the rise in consumer spending, shoppers remained cautious about the wider economic picture, with confidence in household finances dropping six percentage points from June to 59% in July. Interest rates were a concern, with one in three saying they were worried that the Bank of England rate hike last week 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."