BarclayCard noted that the rising demand from lockdown appears to be cooling
According to a report by Barclay Card, consumer spending rose 11.6% in July compared to the same period in 2019 as British people put out their wallets due to improved weather and relaxed restrictions.
More specifically, the entertainment sector has grown for the first time since the onset of the pandemic as Britt challenged cinemas and sporting events.
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Fuel spending increased by 4.1%. This is at the highest level even before the pandemic came into effect, and has seen prices rise at the pump. More people started driving to their UK-based holiday destinations and driving to their car to work.
Meanwhile, the travel industry continues to struggle. Despite rising international bookings, spending on airlines and travel agents has fallen by 56.2% and 66.6%, respectively. This is comparable to the 70.9% and 75.3% decline in June.
Barclaycard noted that demand for pent-ups from lockdown appears to be cooling in some sectors, such as restaurants and in-person retail.
Raheel Ahmed, director of consumer products, said: “The major sports equipment and heat waves of July have brought the country back to its much-anticipated growth, providing reasons to keep the country up and celebrate together.”
“Some sectors have retreated a bit as the post-lockdown ‘honeymoon’ period has cooled, but July has been a generally positive month. However, with inflation expected to rise, it will be interesting to see how this will affect consumer spending behavior over the coming months. ”
