UK Consumer Spending Recovers in July With Bars And Restaurants Reopening

British consumers spent last month at the highest rate since the country began implementing general isolation and lockdown measures to combat the Coronavirus in March, as bars, restaurants, barber and beauty shops reopened.

Data from Barclay Card and the British Retail Consortium showed that spending is close to returning to normal levels, although not all sectors benefit from this.

Barclay Card said consumer spending was 2.6% lower than in July 2019, the lowest drop since the lockdown began.

Official figures announced on Wednesday are expected to show that Britain suffered the most economic damage from the Covid-19 pandemic among large economies between April and June, as production is expected to decrease by about 20%.

Although unemployment has not registered only a slight increase so far, due to the most important reasons of the government’s program to protect jobs, the Bank of England expects the unemployment rate to nearly double, to record 7.5% by the end of 2020.

The reopening of businesses and the mild weather boosted consumer spending in July. But sales of the bars and restaurants that reopened on July 4 were still significantly lower compared to the same period last year.

In contrast, fast food and take-out sales registered a 20% year-on-year increase as people prefer to eat at home. Spending on groceries, furniture and electronics also increased strongly, while spending on travel remained weak.

The British Retail Consortium data covering shopping only provided a similar picture for July.