British retailers get a boost from World Cup and sunny weather
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The underlying consumer picture is also showing signs of stabilising, after households spent the early months of the US-Iran war stockpiling fuel.
PHOTO: REUTERS
LONDON – A heatwave and the World Cup prompted Britons to splash out on pints of beer, clothes and electronics in June, potentially boosting economic activity in Britain.
Card spending rose 1.9 per cent from a year earlier, according to Barclays data, the fastest increase in 11 months.
Spending in pubs soared during England’s matches, while families bought fans, cold drinks and summer clothing to cope with one of the hottest months of June on record.
Separate figures from the British Retail Consortium (BRC) reinforced the picture of resilient demand.
The BRC said its total retail sales indicator rose for a second consecutive month as hot weather encouraged more online shopping.
“June’s record-breaking heat, food price inflation easing slightly and the start of the World Cup gave retailers a welcome boost, encouraging more frequent top-up shops,” said Sarah Bradbury, chief executive of research firm IGD. “With both the warm weather and football tournament continuing in July, consumer confidence could receive a further uplift.”
The reports add to evidence that England’s World Cup run, which continues with the match on July 16 against Argentina, is giving a lift to Britain’s otherwise sluggish economy.
The underlying consumer picture is also showing signs of stabilising, after households spent the early months of the US-Iran war stockpiling fuel and cutting back on discretionary purchases.
Barclays’ measure of confidence in job security improved in June, echoing other private surveys that suggest the downturn in the labour market is bottoming out.
Overall consumer confidence, as well as views on the cost of living and the strength of the economy, remained broadly stable.
Economists warn that the recovery remains fragile.
High interest rates are still weighing on household budgets, while rising energy bills are set to squeeze consumers further.
A gauge of Britons falling behind on credit card and other unsecured debt repayments has reached its highest level since the financial crisis, underscoring the strain on household finances.
Jack Meaning, chief UK economist at Barclays, said the economy likely slowed through the middle of 2026, with only a modest pick-up in growth expected in the second half of the year.
Britons are also facing a change in prime minister, with Andy Burnham set to replace Keir Starmer soon, on top of more global volatility.
“Ongoing political uncertainty and the impact of the Middle East conflict starting to filter through to food prices, may weigh on confidence once again,” IGD’s Bradbury said. BLOOMBERG
