London: UK consumer confidence reached its strongest level in nearly two years in July, with research suggesting that the men’s football World Cup and a rise in domestic holidays helped drive summer spending.
Improved sentiment was also supported by a ceasefire in the Middle East conflict in June and the arrival of a new prime minister at 10 Downing Street, easing some of the uncertainty that had weighed on consumers for an extended period.
According to Barclays’ monthly consumer spending survey, 30 percent of respondents said that they were confident about the strength of the UK economy in July. This marked the highest level in 21 months and was six percentage points higher than in June.
Consumer spending through Barclays cards increased by 2 percent year on year in July, following a 1.9 percent rise in June. The bank said the findings indicated that consumers were feeling more secure in their employment and had greater room to spend on non-essential purchases, with discretionary spending rising 1.6 percent.
Pubs were among the biggest winners, recording a 10 percent rise in transactions, which Barclays attributed to England’s run in the World Cup. The tournament was previously estimated to have generated an additional £150 million in sales for British pubs.
Spending at cinemas also increased by 2.6 percent, boosted by the popularity of films including Toy Story 5 and The Odyssey, which has become the highest-grossing movie of director Christopher Nolan’s career.
Meanwhile, a series of heatwaves affected spending patterns, with consumers favouring holidays within the UK over overseas trips. Airline ticket spending declined, while expenditure on UK accommodation increased by 2.6 percent.
Confidence in the European economy also improved, rising six percentage points to 35 percent, the highest figure recorded since Barclays began monitoring the measure in 2015.
A separate report from the British Retail Consortium (BRC) found that the improvement in consumer confidence benefited some retailers, although the impact varied significantly across the sector.
Food sales rose 3.8 percent year on year in July, broadly matching the 3.9 percent growth recorded in July 2025. Clothing retailers also experienced a seasonal boost, although extreme heat encouraged many shoppers to buy online rather than visit high streets.
Consumers remained cautious about expensive purchases such as furniture and computers. Instead, the BRC said shoppers were favouring smaller discretionary treats, including beauty products and fashion jewellery.
Retailers reported mixed results during the hot summer. John Lewis, H&M and Zara faced difficult trading conditions and weaker sales, while HMV, which operates 114 UK stores, reported a 12 percent increase in visitor numbers during the first half of the year compared with the same period in 2025.
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