World Cup boosts spend in pubs during June

Figures from Barclaycard showed household leisure spending at pubs grew in June against a year-on-year fall of 2.1% in general consumer spending. This included a 9.6% hike on the day of the first England match.

Restaurant spend rose by 13% year-on-year and saw double-digit growth for the eleventh consecutive month, which is attributed to people dining out during the warm weather.

The World Cup also brought favorable year-on-year spending increases at off-licenses (23%) and supermarkets (13%).

Meanwhile research from vouchercodes.co.uk showed World Cup related spend in pubs and clubs was expected to hit £116m. The firm claimed the retail and leisure industry as a whole had received an extra £865m as a result of the tournament. However, the figure is likely to fall short of the £1.3bn predicted had England progressed into the second round.

General spending remains ahead of inflation for the third month, however Barclaycard believes a weak wage growth held back household spending.

Chris Wood, managing director at Barclaycard, said: “Earnings growth overtook inflation in the first quarter of the year but has since fallen back, limiting households’ ability to spend more. What spending growth we are seeing is predominantly down to the current record level of employment creating more income in the economy, rather than households spending more in real terms – a case of more people spending, not people spending more.

“So until we see wages steadily and consistently increasing above inflation, it’s our view that spending growth will remain comparatively muted.”

Regionally, Northern Ireland saw strong spending growth of 3.2%; whereas spending in Scotland and the East Midlands was up just 1.2% – coming in below inflation.