Barclays’ Consumer Spend report for July 2026 said that essential spending grew 2.9% and non-essential spending increased 1.6% compared to the previous month.

Confidence in the strength of the UK economy hit 30% in July, which is a 21-month high and a six-percentage point improvement on June.

Confidence in the European economy also saw a boost of six percentage points to climb to 35%, the highest level since Barclays started tracking the measure in 2015.

Job security was up one point to 47%, while ability to spend on non-essential items was rated by respondents at 53%, up from 51% the prior month.

Confidence in household finances stayed at 64%, with 57% saying they felt able to manage their money without significant stress and make good financial decisions in uncertain times.

England’s World Cup run contributed to the volume of pub transactions growing 10% in July, with the value of spending up 7.4%, its highest level since December 2023.

The overall hospitality and leisure category grew 2.2%, with cinemas seeing a 2.6% rise following the release of major films including Toy Story 5 and The Odyssey.

Travel spending, however, fell for the fifth consecutive month, with a 6% fall in airline spending. Despite this, travel agents saw a 2.5% increase, and hotels, resorts and accommodation were up 2.6% as staycations were prioritised.

Retail spending grew 2.1%, up from 1.9% in June 2026, with the hot weather also boosting electronic sales (rising 1.3%), garden centres ( 4%) and on clothing ( 2%).

One in five UK adults said they bought summer clothes in response to the recent heatwaves, while a quarter avoided cooking and exercising outdoors as a result.

The research also suggested 48% of UK adults have used AI for planning or budgeting, up from 35% in July 2025, with product research, budgeting and holiday planning being the top uses.

In addition, 78% of Gen Z has used AI for planning or budgeting, a nine-point rise on the same period last year.

The findings are based on research carried out between 24^th and 29^th July by Opinium on behalf of Barclays, with a representative sample of 2,000 respondents.

The consumer card spending data is gathered from Barclays’ issuing business and relates to the period covering 20^th June 2026 to 23^rd July 2026.

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.”