Consumer spending grew 6.2 percent in June but household budgets tighten

Spending on consumer cards was 6.2 per cent up in June on the same period in 2021, with entertainment, hospitality and international travel sectors seeing an increase on the month before as Britons took advantage of the early summer weather.

Consumers are becoming increasingly selective in spending and feel more insecure about living within their means every month as living costs continue to rise, new data reveals.

Data from Barclaycard showed that spending on essentials rose by 4.4 per cent, thanks mainly to a rise in fuel spend (up 24.8 per cent), as petrol and diesel prices surged further.

While spending in restaurants declined by 3.3% compared to June, this category saw a slight (0.8%) rise when compared with June 2021, while bars, pubs and clubs saw a 0.1% increase.

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Despite the uncertainty surrounding possible loss of flights, travel agencies (6.4 per cent), airlines (2.8 per cent) and hotels, resorts and accommodation companies (3.3 per cent) saw monthly growth as holidaymakers were booking their holidays during the summer.