Warm weather has driven shoppers to the high street for fans, sun cream and sports gear, helping UK retail sales rise from 3.1% in June compared to last year, according to the British Retail Consortium.
It's a noticeable bump, with retailers crediting both the sunshine and summer events like Wimbledon for pushing up demand and seasonal products.
Yet, behind the surge in summer spending, families remain cautious about their day-to-day expenses and budgets. New data from Barclaycard shows that overall card spending actually decreased year-on-year in June.
With seven in ten households making financial adjustments in light of the current economy in the UK. "Consumers are remaining cautious and maintaining savings buffers," Said Jack Meaning, Chief UK Economist at Barclays.
(Image credit: Getty Images)
Essential spending on groceries, fuel, and household basics fell by more than 2%, showing that households are keeping a close eye on prices and many are choosing value ranges or buying only what they really need.
Retail analysts point to this cautious approach as a sign that consumer confidence remains shaky, despite the draw of summer-time bargains. Karen Johnson, Head of Retail at Barclays, said, "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"
Meanwhile, Helen Dickinson from the BRC notes that while seasonal items experienced a surge, overall spending patterns indicate that people are still hesitant to part with their money unless there is a compelling reason to do so.
Inflation continues to squeeze household budgets, so even as retailers hope for a busy July, most shoppers are staying focused on essentials. The outlook for the rest of the summer remains uncertain, with the weather offering only temporary relief from the pressures of everyday spending.
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