UK clothing sales flat despite higher purchase volume in Jun: Barclays

This trend reflects a shift in consumer behaviour, with shoppers buying more frequently but likely choosing lower-priced or discounted items, leading to minimal overall spend growth.

Meanwhile, overall consumer card spending fell by 0.1 per cent year-on-year in June, an improvement from the 1.0 per cent decline reported in May.

UK consumers’ confidence in their household finances and ability to live within their means reached their highest points since February, at 73 per cent and 76 per cent respectively. Taking steps to shore up their finances, seven in 10 (69 per cent) have made financial adjustments in light of the current economic outlook, with one in three (34 per cent) building a savings buffer in case costs rise, stated the research.

“Despite the warm weather, which usually boosts non-essential sectors such as retail and hospitality, consumers spent cautiously in June, prioritising value as they navigate economic uncertainty. Encouragingly, confidence in household finances improved, showing consumers’ willingness to spend on the things that matter most to them,” Karen Johnson, head of retail at Barclays, said.

“The economy has cooled throughout Q2, but our data does show pockets of strength. However, with both global and domestic uncertainty, and temporarily heightened inflation likely to continue, consumers are remaining cautious and maintaining savings buffers. We expect this to lead to limited GDP growth for the remainder of this year, before falling interest rates and a stronger sense of certainty drive a return to growth next year,” Jack Meaning, chief UK economist at Barclays, said.

ALCHEMPro News Desk (RR)