According to Barclays, spend growth in restaurants was -18% while transaction growth was -18.1%.
Consumer card spending fell -0.3% year-on-year overall, a slight improvement on June (-0.6%) but significantly lower than the latest CPIH inflation rate of 2.8% as the mixed weather across the month combined with ‘Brits’ selective discretionary spending, continued to pose challenges for retailers’.
Pubs, bars and clubs saw an uplift of 4.9% in July – the category’s highest growth since January – as football fans flocked to their local to watch the final rounds of the Euro 2024 tournament.
Despite England’s loss, the final against Spain led to payment transactions almost tripling at pubs and bars on 14 July, increasing by 195.6%.
This also marked the busiest Sunday of the year for pubs, with transaction volumes up 92.9% compared to the average Sunday in 2024.
Takeaways and fast food were clocked at 2.2% but transaction growth was -0.9%.
Confidence in the UK economy improved by five percentage points in July, rising to 32% – the highest level since February 2022. However Brits’ confidence in their household finances and ability to live within their means both declined.
”While weather, sports events and concerts all look to have resulted in seasonal fluctuations, the bigger picture is that consumers are seeing their incomes and spending power rise and are becoming more confident in the overall economic outlook,” says Barclays chief UK economist Jack Meaning.
“This, coupled with the fact that the Bank of England has begun to reduce interest rates, should translate into stronger underlying spending growth, as we move through the second half of this year and into 2025.”