UK consumer confidence hits highest level in nearly two years - Barclays.


UK consumer confidence hit its highest level in nearly two years in July as hospitality and leisure spending was boosted by warm weather and the World Cup, according to data released by Barclays on Tuesday.

Source: Sharecast

Confidence in the strength of the UK economy reached 30%, hitting a 21 month-high and marking a six-percentage point improvement on the month. Confidence in the European economy also grew, climbing six points to 35% - the highest level recorded since Barclays started tracking the measure in 2015

Consumer card spending rose 2% year-on-year following a 1.9% increase in June. Spending on non-essentials was 1.6% higher on the year in July, broadly in line with June and supported by summer holiday spending, socialising, and seasonal retail purchases.

Card spending on essentials rose 2.9% - the largest uplift in 15 months - underpinned by stronger grocery spending and continued growth in fuel as summer travel and holiday routines contributed to higher everyday outgoings.

Spending in the hospitality & leisure sector was up 2.2% year-on-year in July, up from June’s 1% increase, as the warmer weather and sporting occasions boosted activity across a number of categories.

Rohan Kumar, head of client insights at Barclays, said: "Card spending strengthened further in July, with its highest growth in 12 months. Essential spending reached a 15-month high, with non-essential spending remaining in growth. Summer holidays, continued warm weather and England’s World Cup run supported activity across travel, hospitality, everyday essentials and seasonal retail categories."

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.