Households are the most upbeat they have been for almost two years about the UK economy, according to latest research by Barclays. The 30% score last month was up strongly from 24% in June, in another possible sign of a 'Burnham bounce' feel-good factor created by the new PM.
Spending and Confidence Rise
People also reported feeling more confident in their job security and ability to buy non-essentials, with discretionary spending up 1.6%, according to Barclays' payment data. It came after a report on Monday suggested the jobs market was showing 'rays of light' in a boost to those battling to find work.
Recruiters said a decline in workers getting permanent work that stretches all the way back to 2022, around the time failed Tory PM Liz Truss quit, has finally come to an end. The number of vacancies for temporary workers has also risen for the first time in two years, according to a report by the Recruitment and Employment Confederation (REC) and accountancy giant KPMG.
Hospitality and Leisure Boost
Barclays said takings in pubs, bars and clubs surged 10% last month, thanks to England's World Cup run, with the overall hospitality and leisure sector up 2.2%. Sales in hotels and other accommodation were up 2.6%, and travel agents by 2.5%. However, spending on air fares was down year on year as Brits swapped to staycations, Barclays added.
Cinemas enjoyed a 2.6% uplift owing to box office hits Toy Story 5 and The Odyssey, the bank explained.
Expert Comment
Rohan Kumar, head of spend insights at Barclays, said: "Card spending strengthened further in July, reaching its highest level for 12 months, with both essential and non-essential spend remaining in growth."
"Multiple factors played a part, with UK staycations, continued warm weather and England's World Cup run lifting spending on travel, hospitality, everyday essentials and seasonal retail categories."
Broader Confidence Indicators
It comes after pollsters GfK said a combination of the run-up to Andy Burnham's appointment as PM, England's successful run in the World Cup and the fine weather had lifted the mood of the nation. Polls revealed consumer confidence had seen a significant six-point rise - the largest increase since November 2023. And confidence in the general economic situation over the past 12 months jumped by 10 points to -39, still low but five points higher than a year ago.
The Office for National Statistics said retail sales rose 1% in June, despite economists predicting a fall.
