World Cup fever helps lift consumer spending in June, says Barclaycard

Consumer spending grew 5.1% year-on-year in June, according to Barclaycard's newest monthly report on Britain's spending habits.

The UK maintained the high level of consumer spending seen in May, with non-essential expenditure expanding 5.5%, the metric's best performance since October 2016, and entertainment spending soaring 33% in Britain's pubs on the day of England's debut match in the World Cup.

Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, showed that the high level seen in May had not slowed down one iota, as consumers continued to prioritise making the most of the summer’s experiences.

Entertainment saw an 11.3% boost, the largest increase since July 2018, as consumers demonstrated their continued willingness to spend on experiences. Cinema and tickets soared to 20% growth, while restaurants saw an increase of 9.7%.

Boosted by the kick-off of the World Cup, pub expenditure grew 9.5% overall in June.

Barclaycard said that retailers could also see a boost in the coming months, as 42% of Britons surveyed claimed they would like to support their local high street in the wake of recent store closures.

Essential spending, meanwhile, settled to a 3.2% increase.

One in three Brits spent more than average during summer, 28% of which said it was in order to plan more activities to make the most of the hot weather, which, overall, seems to have prompted consumers to become more optimistic.

65% of Britons claimed they felt confident in their household finances – the highest proportion in twelve months.

Looking ahead, however, Brits remain "somewhat cautious" with 42% of those surveyed by Barclaycard stating they would hold off on buying big-ticket items until the economy seems more settled.

Esme Harwood, director at Barclaycard, said, "Consumer spending maintained its strong growth in June for the second month in a row. As the warm weather continues and World Cup fever sets in, it’s clear many households are prioritising fun in the sun while making the most of the summer’s best experiences."

"While some lingering caution remains, confidence in household finances is at a 12-month high. This may be good news for retailers, especially as many shoppers are keen to use their spending power to help their local high street," added Harwood.