Consumer confidence reaches new highs as spending grows 2.0% in July

Confidence in the strength of the UK economy reached 30% in July – representing a 21 month-high and a six-percentage point improvement month-on-month, according to Barclays UK Consumer Spend Report. Confidence in the European economy also climbed six points to 35% – the highest level recorded since Barclays started tracking this measure in 2015.

Consumers reported feeling more confident in both their job security and ability to spend on non-essential items, at 47% and 53% respectively (up from 46% and 51%). Confidence in household finances stabilised at 64%, as three in five say they feel able to manage their money without significant stress, and to make good financial decisions in uncertain times (both 57%).

Hospitality and Leisure

Spend in the overall Hospitality & Leisure sector increased by 2.2% year-on-year in July 2026, an uplift compared to June 2026 (1.0%), as the warmer weather, and sporting occasions boosted activity across several categories.

Spend on overall Eating & Drinking rose to 3.1%, marking the strongest growth seen since December 2025 (3.2%). In particular, spend at Bars, Pubs & Clubs increased by 7.4%, the largest year-on-year uplift since December 2023 (7.9%), as England’s World Cup run contributed to pub transactions growing by 10.0% in the month. Restaurants, Cafes & Bakeries, and Takeaways and Fast Food also had strong months, with spend increasing by 2.1% and 1.8% respectively, as consumers balanced social occasions out, with more casual food and drink spending.

Meanwhile, spending on Travel continued into a 5^th month of decline in July 2026 (-0.3%), with Airlines contracting -6.0%. However, Travel Agents saw 2.5% growth in the month, whilst spend at Hotels, Resorts & Accommodation grew 2.6%, suggesting holidaymakers are still prioritising staycations over trips abroad amid ongoing travel uncertainty.

Rich Robinson, head of hospitality and leisure, Barclays Corporate Banking, said: "Overall Hospitality & Leisure spend increased in July, supported by warmer weather, England’s World Cup run and major theatrical releases. Spend on Eating & Drinking reached its highest point since December 2025, with Bars, Pubs & Clubs seeing particularly strong growth, as consumers made the most of the start of the summer holidays."