The latest Barclaycard report shows consumer spending rose 5% in July:
Hot weather boosts food spending, as people spend on BBQs and picnics
Pub spending rose 73% on the day of England’s semi-final
Fears of the rate hike mean people are concerned about their finances
Laura Suter, personal finance analyst at AJ Bell, comments:
“This summer’s heat wave and World Cup fever boosted consumer spending in July, with people spending on picnics, BBQs and pubs.
“People are making the most of the sunshine as spending on food increased 6.7% in the month, while more families are also going on day trips and doing outdoor activities.
“The World Cup effect also continued to boost spending in the month, with money spent in pubs rising 73% on the day of England’s semi-final, as people cheered on their team. Overall the amount shelled out in pubs increased by 17% in July – marking the biggest rise since April last year.
“However, the hangover is looming as people admit they are worried about the effect of last week’s interest rate rise on their finances. The 0.25 percentage point hike last week will hit those who are in debt, including many who are already struggling to make ends meet.
“A third of those questioned said they were worried that the Bank of England’s move would mean they have less money each month, while confidence in finances among those questioned dropped by 6 percentage points to 59%.
“This cautiousness is also shown in the fact that households are still putting off buying big ticket items, such as household appliances and electronics.”
*The data from Barclaycard covers nearly half of the nation’s credit and debit card transactions.