Euro 2020 and ‘Freedom Day’ lift consumer spending above pre-Covid levels

Euro 2020, the Tokyo 2020 Olympics and “Freedom Day” provided the perfect storm to lift consumer spending above pre-Covid levels, new figures released today reveal.

Data from Barclaycard shows consumer spending was 11.6 per cent higher than in the same period in 2019, before the onset of the Covid crisis.

Consumers rushed to pubs to watch the final matches of England’s route to the final of Euro 2020, which they lost on penalties to Italy on 11 July.

Sports fans also attended pubs and bars to cheer on Team GB athletes at the Tokyo 2020 Olympics.

“Pubs, bars and clubs had another strong month, recording 30.5 per cent growth when compared to July 2019, as Brits socialised in beer gardens and returned to nightclubs for evenings out,” Barclaycard said.

The data covers nearly half of the UK’s debit and credit transactions.

The July heatwave and the ending of all Covid restrictions during the month also prompted Brits to splash the cash to capitalise on their newfound freedoms.

Barclaycard also noted that a quarter of Brits had dipped into Covid-induced savings, indicating that a large proportion of households may choose to drawdown their newfound capital instead of investing it or keeping it in savings accounts.

Raheel Ahmed, head of consumer products at Barclaycard, said: “July’s major sports fixtures and the heatwave kept the nation in good spirits, providing more reasons to celebrate together, and giving the entertainment industry its long-awaited boost back into growth.”

Spending on essential items was up 14 per cent compared to July 2019, primarily driven by spending on specialist food and drink stores surging 78.5 per cent as Brits purchased match-day essentials ahead of England games.

Entertainment spending rose for the first time since the pandemic started, with improved consumer confidence levels leading Brits to buy tickets to theatre, cinema and sporting events.

Indications that demand is starting to cool after an initial wave of spending was unleashed after the early stages of Covid unlocking are emerging.

Restaurant spending dipped in July, bringing the difference between pre-pandemic spending to -13.1 per cent, Barclaycard said.