The outlook for the airline industry remains bleak
Compared to the same period in 2019, consumer spending rose by 11.1% in June, as improved weather conditions and the easing of restrictions led to Brits socialising more and going on holidays within the UK.
Barclaycard data revealed that spending on essential goods rose by 14.7%, the most since before the pandemic began in March 2020.
This came about as a result of surges in supermarket shopping, up 19%, and spending at specialist food and drink outlets, such as butchers and off-licenses, up 76.4%.
While holidays abroad remained restricted, many Brits opted for staycations and to visit friends and family, as spending on fuel increased by 3.6%. It was the first time spending on fuel rose since the beginning of the pandemic.
As Brits enjoyed the mini-heatwave and watched the early stages of the European Championships on big screens, spending at bars and pubs rose by 38.1%.
Barclays suggested that the trend is likely to continue as the Tokyo Olympics draws closer and British people’s appetites to socialise remains strong.
There was a ray of hope for the British travel industry which has been demoralised in recent months, as it saw its first month of growth, at 5.4%, once before the pandemic, as people travelled within the UK. However, when looking at airlines, the outlook is bleaker, as travel agents and airlines saw respective falls of 75.3% and 70.9%.
Raheel Ahmed, Head of Consumer Products, said: “June saw Brits flock back to pubs, bars and beer gardens to watch the football and tennis on the big screens, as the heatwave early in the month encouraged many of us to get out in the sunshine and socialise.”
“The start of the Olympics and the expected easing of restrictions later this month should continue to lift spirits and provide more opportunities for get-togethers, whether that’s a weekend break, a meal out or to celebrate sporting victories. It’s great to see Brits making up for lost time over the past year.”
