UK consumer confidence climbs to two-year high as World Cup and domestic holidays boost spending

Barclays’ latest consumer-spending survey indicated that confidence in the UK economy hit a 21-month high in July, with 30% of participants expressing optimism, up six percentage points from the previous month. Card transactions grew 2% year-on-year, and discretionary outlays increased by 1.6%, reflecting stronger job security and more leeway for non-essential purchases. Pubs benefited most, recording a 10% rise in transactions and an estimated £150 million boost from the men’s World Cup.

Cinema spending climbed 2.6%, while heatwaves redirected holiday spending toward domestic accommodation, lifting that category by 2.6%. The British Retail Consortium noted growth in food sales and modest gains for clothing, but a decline in big-ticket items such as furniture and computers. Retailers reported varied performance, with HMV and The Works seeing higher footfall, whereas John Lewis, H&M and Zara faced tougher conditions. Prime Minister Andy Burnham’s cost-of-living pledges and a lull in Middle-East tensions were cited as additional confidence factors.