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People began to spend more, but fewer believed in the economy



Even though consumers have begun to make more frequent purchases, their confidence in the future has declined over time.
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According to Barclaycard, consumer spending in Britain increased by 0.2% year on year in August. And this is the first increase since February 2020. Expenditure on essential goods increased by 5.1% year on year, sales of clothing rose by 0.3%, and purchases in supermarkets increased by 14.9%.

But the level of confidence in the economy fell to the lowest level in the history of Barclaycard indices, amounting to only 19 percent. Fewer and fewer Britons are optimistic about the future, fearing the coming economic turmoil. It is possible to assume that similar sentiments were observed in other countries.

At the same time, company data show other changes that have occurred in recent months. For example, consumers are more likely to shop online - months of isolation have accelerated pre-existing trends. As a result, online sales of products jumped to an impressive 102.7% year on year. Online shopping for clothing increased by 24.3%, and consumers were 24.3% more likely to order takeaway food.

All these trends show the global changes taking place around the world. The retail sector is expected to remain depressed for the foreseeable future, which would also mean significant reductions in advertising spending. Marketers disappointingly conclude that the road to recovery will be long and painful.

According to Barclaycard representatives, the coming autumn will be a real test of strength for many businesses. That will be incredibly difficult for the tourism sector, which has already experienced a decline of 61% compared to last August.

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