Consumer confidence at near two-year high as World Cup and UK holidaying lift summer spending

In July, consumer spending across the UK saw a notable boost, with Brits indulging in a summer filled with sport, sunshine, and leisure activities, according to data released by Barclays. Card spending surged by two percent to reach its highest level in 12 months, driven by increased transactions at pubs, bars, and clubs during England's World Cup campaign.

Overall, hospitality and leisure spending rose by 2.2 percent. Estimates suggest around 5.5 million pints were consumed during England's match against Norway, as reported by the British Beer and Pub Association (BBPA). A 2.6 percent increase in cinema spending was also noted, courtesy of the release of Toy Story 5 and The Odyssey.

Rohan Kumar, head of spend insights at Barclays, attributed the rise in spending to multiple factors, including UK staycations, warm weather, and England's World Cup run. Both essential and non-essential spending remained in the growth zone, with growth rates of 2.9 percent and 2.6 percent respectively. Confidence in the UK economy peaked at 30 percent in July, marking a 21-month high and a six-percentage point improvement from the previous month.

This uptick in consumer confidence was fueled by modest increases in job security, up one percent to 46 percent, and the ability to spend on non-essentials, which climbed two percent to 53 percent. However, several metrics remained stagnant, with household finances at 64 percent and the ability to live within means dipping one percent to 69 percent.

Recently appointed Prime Minister Andy Burnham embarked on a cost-of-living mission, touring the country to provide "breathing room" for Brits. Burnham has vowed to tackle fake discounts, crack down on stealth subscriptions, and ban businesses from advertising "rip-off" deals. He also plans to accelerate existing initiatives to simplify subscriptions.

Earlier this year, Barclays noted its first decline in consumer spending since 2024 due to geopolitical tensions impacting the economy, prompting Brits to be more cautious with their finances.