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Consumer spending on the rise, says Barclaycard

UK consumer spending in August was among the strongest seen so far this year, according to new research from Barclaycard.

The payments company, which processes nearly half of all the UK's debit and credit card transactions said that spending grew 4.2% year on year in August as households splashed out on clothing, entertainment and travel.

Positive economic indicators such as GDP growth, falling inflation and rising employment all encouraged consumers to loosen their purse-strings, said Barclaycard, which helped contribute to a 13.4% year-on-year increase in spending on entertainment, a 9.6% upturn in clothing and a 5.3% jump in travel sector sales.

Chris Wood, managing director of Barclaycard, said: "While the increase in spend in August is certainly encouraging, households continue to be cautious in their approach to spend, being reluctant to give up the hard-won benefits of the fiscal prudence they adopted during the economic downturn. 

"We believe that this new normal – fiscal responsibility, coupled with a ceaseless search for value for money – is here to stay. With the summer months traditionally strong for discretionary spend, we need to see the August rebound continue for a little longer before we can be sure we have truly turned the corner."

 

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