Consumer spending slowed in July

10 August, 2016

The latest Barclaycard consumer confidence research has shown caution among consumers, as spending rose 2.6% in July, with growth levels down on those seen in May and June. 

The Barclaycard data revealed many adopted a "business as usual" approach to outgoings in the month following the Brexit vote, despite the dip in growth.

Consumer spending growth slowed slightly to 2.6% in July (down from 3.6% growth in May and June), as overall confidence cooled in response to economic and political uncertainty.

Nearly half (49%) of consumers said they were not confident in their ability to spend more on non-essential items, the highest figure since February. But consumer spending in restaurants and pubs remained resilient (up 12.2% and 12.8% respectively), perhaps thanks to the warmer weather, with overall entertainment spend up 10.7% year-on-year (yoy) in July.  

However, overall confidence levels have dipped, and 54% of consumers expressed confidence in their household finances, significantly lower than the 71% average recorded in 2015.

Paul Lockstone, managing director at Barclaycard, said: “Softer spend growth in July was perhaps to be expected given the external economic and political context. While growth did slow, some categories performed well as consumers adopted a ‘keep calm and carry on’ approach, showing that they are still prepared to spend where it matters – enjoying quality time with friends and family.”

Site Search


    Insights from the Bakery Market Report 2016

    You can now purchase the Bakery Market Report 2016, which offers insight into the retail bakery trade in the UK.

Events Calendar