The World Cup and warm, sunny weather have helped consumer spending maintain its strong growth in June for the second month in a row, new data shows.
Consumer spending rose 5.1 per cent in June, the same amount as in May, which was the highest level seen since April last year, according to the latest set of data by Barclaycard.
This was helped by the biggest jump in non-essential spending in over a year and a half, as Brits spent more money on going out as they made the most of summer weather.
World Cup boost: Pub expenditure grew 9.5 per cent overall in June
Boosted by the kick-off of the World Cup, pub expenditure grew 9.5 per cent overall in June – and spending increased 33 per cent on the day of the first England match compared to the same day a week before.
This contributed to entertainment spend rising 11.3 per cent overall, the largest increase since July last year.
Non-essential spending overall was 5.5 per cent higher – its best performance since October 2016, Barclaycard said.
Cinema and tickets remained popular despite the heatwave, with spending in this sub-category rising 20 per cent, while restaurants saw an increase of 9.7 per cent.
Garden centres were another summer winner, with spend rising 10.5 per cent last month.
However, supermarket spending rose by just 0.8 per cent – its lowest level in more than a year – with essential spending overall settling to a 3.2 per cent increase.
Esme Harwood, director at Barclaycard, said: ‘As the warm weather continues and World Cup fever sets in, it’s clear many households are prioritising fun in the sun while making the most of the summer’s best experiences.’
Pub spending increased 33% on the day of the first England match compared to the same day a week before
Barclaycard also said that of the one in three Brits who have spent more than normal so far this summer, almost three in ten say it’s because they were planning more activities to make the most of the hot weather.
A separate set of figures by the British Retail Consortium and KPMG paints a similar picture, suggesting Brits spent more on beer and barbecues.
UK retail sales rose 1.1 per cent on a like-for-like basis, helped by rising sales of food, beer and alcohol as well as clothes.
However, in-store sales of homewares and other non-food items continued to decline, falling 2.7 per cent.
Helen Dickinson OBE, chief executive of the British Retail Consortium, said that overall, June scored solid, but not sensational, sales.
She added: ‘The reality is that sales don’t grow on the feel-good factor alone. With household incomes still barely growing faster than inflation, conditions for consumers and retailers remain extremely tough.’
It comes as high street retailers struggle, with Mothercare yesterday saying it will now close 60 of its outlets over the next year, leaving around 900 jobs at risk – up from the 50 shops and 800 jobs it previously announced.