Spending on experiences and holidays boosted growth in August, latest figures from Barclaycard show.
Travel spend grew 3.2% to a three-month high, driven by outlay on hotels which rose 14.9%, recording its highest year-on-year increase in 24 months.
“The growth was primarily due to the rising cost of overseas accommodation in line with the depreciation of the pound,” Barclaycard said.
This came as overall consumer spending rose by 4.2% last month – the highest year-on-year increase since July 2015.
This was thanks to a combination of good weather and holiday-goers “firmly committed to overseas travel plans made earlier in the year”.
The data from Barclaycard, which processes nearly half of all the nation’s credit and debit card transactions, indicates consumers took a “business as usual” approach to spending as they saw little change to their disposable income following the outcome of the Brexit vote.
Barclaycard managing director Paul Lockstone said: “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 commited 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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