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UK consumer confidence rises to near two-year high in July
Barclays found 30% of respondents felt confident about the UK economy, and discretionary spending rose 1.6% year over year.
Consumer confidence in the UK climbed to its highest level in almost two years in July, with Barclays attributing the improvement to the closing stages of the men’s football World Cup and more people holidaying within the country, according to data cited by The Guardian Economics.
Barclays said 30% of respondents felt confident about the strength of the UK economy in July, a 21-month high and a six-percentage-point increase from June. The bank also reported consumer card spending rose 2% year over year in July, after a 1.9% increase in June, while discretionary spending was up 1.6%.
The survey pointed to sector-specific gains, including pubs with a 10% increase in transactions “thanks to England’s World Cup run,” and cinemas, where card spending increased 2.6% aided by movie releases. Barclays also said heatwaves pushed spending away from airline tickets and toward domestic holidays, lifting spending on UK accommodation by 2.6%.
Beyond the UK, Barclays reported confidence in the European economy rose by six percentage points to 35%, the highest level since the bank began tracking the measure in 2015. Separately, The Guardian Economics noted a British Retail Consortium report that some parts of retail benefited from the uptick in confidence while others saw continued pressure, including food sales buoyant but the overall picture mixed.