UK spending rose in June, clothing was up but consumers increasingly worried - Barclaycard
UK consumer credit and debit card spending rose 6.2% year-on-year last month as consumers spent more on entertainment and international travel. But Britons are worried about rising living costs and are “becoming more selective about their spending and feeling less able to live within [their] means each month”.
That’s according to Barclaycard, which processes almost half of UK card spending.
And it said that while spend on essential, utilities, holidays and other leisure activities (such as trips to the cinema or dining out) all rose, spending on household goods saw a noticeable drop. That category fell 5.1% compared to the previous month.
Overall spending on non-essential items was up 7.1% year-on-year, although this was a noticeably lower level of growth than seen in May (11.6%) and April (21.2%), continuing the downward trend seen over the last few months.
Some key retail sectors managed to stay in positive territory for the month with clothing up 2.4%, while sports and outdoor retailers rose 4.9%, pharmacy/health/beauty was up 1.9% and department stores rose 1.8%.
This was boosted by consumers socialising, enjoying more time outdoors in the sunshine and preparing for summer holidays and events.
But what about those concerns for the future? The monthly report always comes with a consumer survey and this showed that 91% of people are concerned about the negative impact of rising household bills on their personal finances.
Consumers are also feeling less optimistic about their ability to live within their means (66% versus 71% in May), and their ability to spend on non-essential items (48% versus 54%). In addition, confidence in the future of the UK economy has decreased slightly to 25%, down from 27% in May.