Consumer spending shows green shoots of recovery

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Consumer spending fell 14.5% year-on-year in June, the smallest decline since lockdown began, according to the latest Barclaycard report.

Spend on eating and drinking declined by 56.4%, a slight uplift from spend in May, which was down 70.3%.

Takeaways and fast food spend rose for the first time since before lockdown, with a 5.7% yearly growth as operators across the sector turned to takeaway and delivery as an alternative form of revenue.

Unsurprisingly, the report found that the high street’s recovery may be a long way off, as more than half of consumers (56%) continued to avoid stores, and 31% said they have delayed shopping due to fears of transmission.

But while 18% said they would be put off by crowds in public spaces, the same number said that distancing measures provides them with a degree of confidence to venture out.

“While shoppers remain understandably cautious, slowly but surely Brits are starting to spend again,” said Esme Harwood, director at Barclaycard.

“The recent VAT cut and meal vouchers are also a positive sign for the hospitality industry and it will be interesting to see how these measures impact consumer spending.

“It also seems shoppers are generally reassured by retailer efforts to take precautions and make their stores safer.

“As lockdown eases and Brits are encouraged to enjoy summer safely, it’s clear that people are making the most of a sense of normality again, with many of us travelling to see friends and family, eating al-fresco, and taking day trips.”