UK Consumer Spending Rose in July Due to World Cup and Hot Weather Boost
Overview of July 2025 Consumer Spending Trends
LONDON, Aug 11 (Reuters) - British consumers spent more on food and in pubs last month on the back of England's run to the World Cup semi-finals and hot weather boosted clothing sales but they remained wary of big outlays, according to surveys published on Tuesday.
Key Retail and Spending Figures
Retail Sales Performance
• The British Retail Consortium's total retail sales measure rose by a below-average 1.3% from July 2025, slowing from 1.9% in June
Food and Non-Food Breakdown
• Food was up by 3.8% while non-food sales dropped by 0.7%
• Clothing sales were helped by a heatwave but footwear fell
Industry Commentary
• "Pressures are building across the food supply chain as a result of the conflict in the Middle East and prolonged hot weather, increasing the likelihood of higher food costs and renewed pressure on household budgets as we move into the autumn," Sarah Bradbury, chief executive of the Institute of Grocery Distribution, said
Barclays Consumer Spending Insights
Overall Spending and Growth
• Barclays' gauge of broader consumer spending rose by 2.0%, slightly faster than June's 1.9% increase
• Growth in essential spending was up by 2.9% while non-essentials were up by 1.6%
Sector-Specific Trends
• Pubs reported a 10% rise in transactions helped by the World Cup
• Travel spending was skewed towards domestic 'staycations' with airline spending down 6%
Consumer Confidence and Survey Periods
• Barclays' measure of consumer confidence showed the most optimism about the UK economy in 21 months.
• The BRC survey covered the period of July 5-August 1 while the Barclays spending data was June 20-July 23.
(Writing by William Schomberg; editing by Suban Abdulla)
