UK Economy Confidence Hits 21-Month High Amid Pub and Staycation Boost

Confidence in the UK economy has hit a 21-month high, driven by factors such as pubs and staycations. According to Barclays' consumer confidence measures, the strength of the UK economy reached 30% in July, representing a six-percentage point improvement on June.

The European economy also saw a boost, with confidence climbing six points to 35%, the highest level recorded since 2015. Consumers reported feeling more confident about their job security and ability to spend on non-essential items, at 47% and 53% respectively.

Card spending grew by 2.0 per cent year-on-year in July, following a 1.9 per cent increase in June, but remained below the latest CPIH inflation rate of 2.8 per cent. Essential spending grew 2.9 per cent and non-essential spending increased 1.6 per cent.

The hospitality & leisure category grew 2.2 per cent, with cinemas enjoying a 2.6 per cent boost, following the release of Toy Story 5 and The Odyssey. However, travel spending declined for the fifth consecutive month, down -0.3 per cent.