Member Article

North East consumer spending rebounded strongly in August

Consumer spending in the region reached a 12-month high in August according to new figures released by Barclaycard, as North East shoppers basked in the warm summer weather.

Spending was up 5% year-on-year last month as consumer spending rebounded following paltry 2% growth in July in the wake of the EU referendum, with spending power for North East homes remaining relatively unaffected following Brexit.

The figures, which take into account nearly half of all the nation’s credit and debit card spending, show a significant uptick in Airline (5.5% growth) and hotel spend (27.5%), with the weaker pound motivating more holidaymakers to stay at home this year.

Similarly, spending on cinemas and theatres peaked 27.5% while garden centres and DIY stores also experienced a growth in spend as the warm weather pushed people outdoors to carry out home improvement and DIY projects.

Paul Lockstone, Managing Director at Barclaycard, commented: “Consumer spending has continued to grow after the EU referendum, with August being a particular stand-out month considering confidence in household finances remains low compared to levels seen last year.

“Spending peaks in travel and hotels indicate that most consumers were firmly committed to their summer plans, and spent on trips and excursions they booked months in advance.

“Yet confidence continues to be shaky as the wider economic picture remains uncertain, suggesting it’s too soon to tell if this lift in spending will last once everyone’s holiday tans have faded.”

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