• Consumer spending rose 4.5% in August
• Brits continued to spend big on entertainment and in the pubs
• Cutbacks are already being planned – meals out and treats will be ditched
• Debt hangover could be on the way
The latest Barclaycard report shows consumer spending rose 4.5% in August:
Laura Suter, personal finance analyst at investment platform AJ Bell, comments:
“With the record-breaking hot weather this summer, it’s clear to see that Brits have been making the most of enjoying themselves. This continued in August, with a 4.5% rise in consumer spending.
“Pubs continued to be busy as spending on entertainment, including buying tickets to events, theme parks and days out, rose 10.3% in the month, as people eked out the last bit of summer.
“However, clothes shops have not benefitted from this splurge in spending, seeing a 0.6% rise in the month as people put off spending on Autumn and Winter clothes while the weather is still warm. This comes at a time when many of these retailers need a boost to their tills amid tough conditions on the high street.
“There are signs that the spendy summer is coming to an end, with at third of those questioned saying they are already planning to cut their outgoings, by getting rid of treats for themselves and meals out.
“These figures cover both debit and credit cards, so there is also some concern about how many households can afford the big spends they’ve been making over the summer and whether a debt hangover is headed our way. We are already a nation of spenders rather than savers, and some families will be paying for the fun of the summer for many months to come.”
The data from Barclaycard covers nearly half of the nation’s credit and debit card transactions.
