This was up from July when spend was down 0.4% and June which also saw a decline of 0.5%.
The Barclays Consumer Spend report, which combines millions of transactions with consumer research, found that the overall eating and drinking out market saw a rise in spend of 1.3% but transaction growth was down by 2.8%.
Overall during the month consumer card spending grew by just 0.5% year-on-year, down from 1.4% in July and lower than the latest CPIH inflation rate of 4.2%.
Consumer confidence
Consumer confidence in the UK economy increased to 28% (from 22% in July), following the base rate reduction, while confidence in the European (31%) and global economy (28%) climbed to 10-month highs.
The report also showed that confidence in household finances reached 73%, up both month-on-month and year-on-year (from 72% and 70% respectively)
Two in five (41%) of consumers said they treat themselves regularly, but find ways to do it on a budget, with three in five (61%) buying a “pay day” treat in the last year.
Following the announcement of higher-than-expected inflation in July, nine in 10 consumers (89%) admitted they were concerned about food price rises.
Meanwhile, 91% said they have noticed items becoming more expensive this year. Meat, seafood and eggs (52%), fruit and vegetables (49%), and dairy products (48%) are the most cited examples of products that have gone up in price.
Household finances
Barclays head of retail Karen Johnson said “Encouragingly, confidence in household finances remained steady in August, suggesting that while the cost of living is still front of mind, consumers are learning to navigate the challenges and make the most of their budgets.
“It’s clear that the ‘lipstick effect’ is having an impact outside of beauty, with shoppers treating themselves to feel-good purchases for themselves and their homes.”
Barclays chief UK economist Jack Meaning added: “It is great to see consumer confidence improve in August, and households feel the benefit of another Bank of England rate cut. However, the outlook for the rest of the year remains subdued, particularly as Budget speculation is likely to add to uncertainty for both households and businesses. In our view, it will take further interest rate cuts to provide the economy with a sustained boost.”
