Card Spending Grows In July As Warm Weather Boosts Hospitality And Leisure
Consumer card spending grew 1.4 per cent year-on-year in July, up from -0.1 per cent in June, but remaining below the latest CPIH inflation rate of 4.1 per cent. Essential spending declined -0.7 per cent, however discretionary spend rose by 2.4 per cent – an increase from June’s 0.8 per cent growth – as changeable weather led shoppers to spend on both sunny and rainy-day activities and items.
Entertainment spending was up 7.4 per cent in July, below June’s 8.0 per cent, but ahead of the overall hospitality and leisure sector’s 2.7 per cent growth. Spending on live shows and concerts increased 9.3 per cent, above the 2.5 per cent recorded in June.
The busiest day of the month for the category was 10th July, when general release tickets to Lewis Capaldi’s 2025 tour went on sale. Cinema spend, up 1.6 per cent overall, peaked on 5th July, following the release of Jurassic World Rebirth a few days earlier, on 2nd July.
The overall retail category had a positive month, up 1.9 per cent, after marginal growth of 0.2 per cent in June. This was propped up by clothing which grew 4.2 per cent, its greatest increase since September 2024. This comes as almost one in five (16 per cent) UK adults said they bought more summer clothes and accessories in July, while a quarter (26 per cent) said July’s changeable weather impacted their spending decisions.
Confidence in household finances holds strong
Confidence in the strength of the UK economy dipped once again in July, falling three points month-on-month, to 22 per cent, the lowest level seen since January (21 per cent), having reached a 2025-peak in May, at 28 per cent. Despite this, consumers remain confident in their ability to live within their means. This measure held firm at 75 per cent, just one point below the 76 per cent recorded in June, and five percentage points higher than July 2024 (70 per cent). Confidence in household finances also stabilised at 72 per cent, down marginally from 73 per cent in June, but up seven percentage points year-on-year, from 65 per cent.
A focus on budgeting is likely contributing to the stability of these figures. A third (34 per cent) are building a savings buffer in case costs rise (equal to June), while seven in 10 (71 per cent) have been making financial adjustments in light of the current economic outlook (up two points month-on-month).
Karen Johnson, Head of Retail at Barclays, said:
“The summer sales, changeable weather and shoppers seeking the “feel-good factor” led to a strong July for retailers, particularly among beauty, clothing and furniture stores. While confidence in the UK economy remains subdued, prudent money management, supported by the growing popularity of AI tools to help with budgeting is contributing to a continued resilience in personal and household finances”.