Families are spending more on travel and entertainment as consumer confidence continues to grow.
A new Barclaycard update found spend on travel and entertainment went up 8% in July year-on-year, while consumer spend generally grew 3.5% during the month.
July was the fourth consecutive month of growth for the leisure sector which included family holidays, days out and restaurant meals.
Around 8% more was spent on hotels, 4% extra at travel agents and 2% more on air tickets.
Increased spending has come as 55% of consumers told Barclaycard they feel more confident about their personal financial situation, and expect it to improve again in the next year. Nearly one in five (19%) said they plan to spend more on holidays in the next year.
“As official figures show that the UK economy has finally recovered to its pre-crisis size, the growth in spending in July is a big boost for retailers after months of lacklustre performance,” said Chris Wood, managing director of Barclaycard.
Holidays and going out are also having an impact on the high street generally as customers look to be suitably dressed, with spend in department stores up 7.3%.
“The extra spending on travel and entertainment was not only beneficial to businesses in those sectors but led to strong increases in spending on clothing and at department stores, creating a positive knock-on effect on the wider high street,” Wood added.
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