Card spending in the UK fell by 0.1% in June, as revealed by the latest Barclays Consumer Spend report. This decline is less than the 1.0% decrease reported in May and remains below the CPIH inflation rate of 4.0%. Confidence in household finances saw a six-point increase to 73%, marking a four-month high.
Essential spending contracted by 2.1%, down from May's figure of -1.1%. Despite England experiencing its warmest June on record, discretionary spending only rose by 0.8%, matching November 2024's growth rate. The overall eating and drinking category saw a decrease of 0.5%, while retail grew marginally at 0.2%.
Karen Johnson, Head of Retail at Barclays, commented on the cautious consumer behavior: “Despite the warm weather, which usually boosts non-essential sectors such as retail and hospitality, consumers spent cautiously in June, prioritising value as they navigate economic uncertainty."
Entertainment and health & beauty were among the sectors that performed well, with cinemas seeing a notable increase of 26.9% due to popular releases like "Mission: Impossible – The Final Reckoning" and "How to Train Your Dragon." Furniture stores also enjoyed an uptick of 8.2%.
Jack Meaning, Chief UK Economist at Barclays, noted the cooling economy but highlighted areas of strength: “The economy has cooled throughout through Q2, but our data does show pockets of strength.”
Overall growth figures for June indicate essential spend declined by 2.1%, while non-essential spend increased slightly by 0.8%. The report combines transaction data with consumer research to provide insights into UK spending trends.