Consumer confidence in the UK reached its highest level in almost two years in July, according to research from Barclays. The bank's long-running monthly consumer spending survey indicated that the closing stages of the men's football World Cup and an increase in people holidaying within the UK contributed to a rise in summer spending.
The survey found that 30% of respondents felt confident about the strength of the UK economy in July, marking a 21-month high and a six-percentage-point improvement from June. Barclays also reported that consumer card spending grew by 2% year on year last month, building on a 1.9% increase in June.
The bank suggested that people felt more secure in their jobs and had greater flexibility to spend on non-essential items, with discretionary spending increasing by 1.6%. Pubs were among the main beneficiaries, experiencing a 10% rise in transactions, which was attributed to England's performance in the World Cup.
Confidence in the European economy also climbed by six percentage points to 35%, reaching its highest level since Barclays began tracking this measure in 2015. However, a separate report from the British Retail Consortium noted varied experiences among shops, with food sales increasing by 3.8% year on year in July, while consumers reportedly snubbed big-ticket items like furniture and computers.