Consumer card spending grew 1.4 per cent year-on-year in July, up from -0.1 per cent in June, but remaining below the latest CPIH inflation rate of 4.1 per cent, according to the latest data from Barclays.
Essential spending declined -0.7 per cent from 28 June – 25 July 2025 versus 29 June – 26 July 2024, while discretionary spend rose by 2.4 per cent – an increase from June’s 0.8 per cent growth.
The overall retail category had a positive month, up 1.9 per cent, after marginal growth of 0.2 per cent in June, but grocery card spend grew just 0.9%, with transactions up 1.2%. Supermarket card transactions were down -0.5%, while spend increased 0.6%.
Meanwhile, specialist Food & Drink shops saw a tasty uplift with card spending up 3.1% and transactions up 9.3%.
Confidence in the strength of the UK economy dipped once again in July, falling three points month-on-month, to 22%, the lowest level seen since January (21%), having reached a 2025-peak in May, at 28%. Despite this, consumers remain confident in their ability to live within their means. This measure held firm at 75%, just one point below the 76% recorded in June. Confidence in household finances also stabilised at 72%, down marginally from 73% in June, which was a four-month high.
