Barclaycard noted that pent-up demand from lockdown appears to be cooling off
Consumer spending rose by 11.6% in July, compared to the same period in 2019, as improved weather and the easing of restrictions led Brits to get their wallets out, according to the Barclaycard report.
More specifically, the entertainment sector saw growth for the first time since the onset of the pandemic, as Brits ventured to the cinema and sporting events.
Spending on fuel rose by 4.1%, the highest level since before the pandemic came into effect, on increased prices at the pump. More people drove to their UK-based holiday destinations or began travelling to work by car.
On the other hand, the travel industry is continuing to struggle. Despite overseas bookings rising, spending on airlines and travel agents is down by 56.2% and 66.6% respectively. This compares to a decline of 70.9% and 75.3% in June.
Barclaycard noted that pent-up demand from lockdown appears to be cooling off in some sectors, such as restaurants and face-to-face retail.
Raheel Ahmed, Head of Consumer Products, said: “July’s major sports fixtures and the heatwave kept the nation in good spirits, providing more reasons to celebrate together, and giving the entertainment industry its long-awaited boost back into growth.”
“While some sectors took a small step back as the post-lockdown ‘honeymoon’ period cooled, July was a positive month overall. However, with inflation expected to rise, it will be interesting to see how this impacts consumer spending behaviour over the coming months.”