The Barclays Consumer Spend report, which combines millions of customer transactions with consumer research, found while overall eating and drinking saw a spending boost of 0.8%, this was from an increase in spend in restaurants, cafés and bakeries. This is from a decrease last month which saw it fall by 0.5%.
Entertainment spending was up 7.4% in July, below June’s 8%, but ahead of the overall hospitality and leisure sector’s 2.7% growth. Spending on live shows and concerts increased by 9.3%, with the busiest day of the month for the category being 10th July, when general release tickets to Lewis Capaldi’s 2025 tour went on sale.
Consumer confidence remains fragile
Confidence in the strength of the UK economy dipped once again in July, falling three points month-on-month, to 22%, the lowest level seen since January (21%), having reached a 2025-peak in May, at 28%.
Despite this, consumers remain confident in their ability to live within their means. This measure held firm at 75%, just one point below the 76% recorded in June.
Confidence in household finances also stabilised at 72%, down marginally from 73% in June, which was a four-month high.
The report said a focus on budgeting is likely contributing to the stability of these figures. A third (34%) are building a savings buffer in case costs rise (equal to June), while seven in 10 (71%) have been making financial adjustments in light of the current economic outlook (up two points month-on-month).
Subdued confidence
It also added that consumers are making use of AI to help with managing their money. Over a third (35%) of UK adults have used AI tools to help them plan, budget and/or analyse their spending, rising to seven in 10 (69%) among Gen Z.
Barclays head of retail Karen Johnson said: “The summer sales, changeable weather and shoppers seeking the “feel-good factor” led to a strong July for retailers, particularly among beauty, clothing and furniture stores.
“While confidence in the UK economy remains subdued, prudent money management, supported by the growing popularity of AI tools to help with budgeting is contributing to a continued resilience in personal and household finances”.
