Euro 2020 fuels surge in consumer spending

Euro 2020, warmer weather and the lifting of Covid restrictions drove consumer spending up sharply in the UK in June, according to new figures released today.

Data from Barclaycard shows spending was 11.1 per cent higher last month compared to June 2019, before the arrival of Covid, the sharpest rise since the start of the pandemic.

Spending at pubs and bars surged 38.1 per cent, triggered by people rushing to watch crucial football matches at Euro 2020 and Wimbledon and to soak up the sun during the early June heatwave. The rise was the biggest jump since September 2020.

Read more: Euro 2020: What an England win could mean for the UK economy

The bump in transactions has provided an uplift to many pubs and bars, helping to repair the damage inflicted on the hospitality industry by the Covid crisis and measures to contain it.

Raheel Ahmed, head of consumer products, said: “June saw Brits flock back to pubs, bars and beer gardens to watch the football and tennis on the big screens, as the heatwave early in the month encouraged many of us to get out in the sunshine and socialise.”

“The start of the Olympics and the expected easing of restrictions later this month should continue to lift spirits and provide more opportunities for get-togethers, whether that’s a weekend break, a meal out or to celebrate sporting victories. It’s great to see Brits making up for lost time over the past year.”

Barclaycard’s data covers nearly half of the UK’s credit and debit card transactions.

Read more: Consumer confidence resilient in June despite freedom day delay

Spending on essential items jumped 14.7 per cent, triggered by strong uplifts in supermarket shopping, up 19 per cent, and purchases at food and drinks stores, which surged 76.4 per cent.

Elevated spending at supermarkets was driven by households buying products for BBQs and picnics and match-day essentials ahead of Euro 2020 matches, Barclaycard said.

Spending on fuel jumped 3.6 per cent – the first growth since the pandemic began – as Brits took to the roads to visit loved ones and take domestic holidays.

Demand for takeaways still strong despite reopening

The trend toward consumers upping spending on takeaways during the pandemic extended into June, recording a 146 per cent uplift in online spend, despite the reopening of restaurants in the UK.

This change in consumer behaviour may be having an adverse impact on restaurants, Barclaycard data shows.

Although paring back sharp falls in spending in April and May, spending in restaurants was down 8.4 per cent last month.

Entertainment spending recovered in June, down slightly by 1.7 per cent, but a noticeable improvement on May’s 28.6 per cent fall.

Recent rises in the cost of living are starting to bite. Over half of Brits think prices of everyday items are higher than they used to be.

Latest data from the ONS shows prices rose 2.1 per cent annually in May, higher than the Bank of England’s target.

Read more: Haldane: Inflation will reach four per cent this year