British consumers tightened their budgets in July as rainy weather curbed their spending appetite, according to two surveys released on Tuesday.

Barclays reported a 0.3% annual decline in spending on its credit and debit cards in July, marking the second drop since February 2021, though less severe than June's 0.6% decrease.

While the England men's soccer team's advance to the Euro 2024 final spurred spending in pubs and on barbecues during sunny days, rainy weather led two in five survey participants to cut back on spending. This decline contrasts with price growth running at about 2%, as indicated by official inflation data.

The British Retail Consortium noted a 0.5% increase in sales values from July 2023, up from June's 0.2% fall but below the 1.4% average rise over the past year. Both surveys highlighted a reduction in non-essential spending.

Jack Meaning, Barclays' chief UK economist, indicated that despite fluctuations due to weather, sports events, and major concert tours like Taylor Swift's, the broader trend shows a recovery in spending power and consumer confidence. He noted that the Bank of England's move to lower interest rates should boost underlying spending growth in the latter half of 2024 and into 2025.

The UK's economy emerged from a brief recession in early 2024 and is projected to grow by 1.25% over the year, potentially outperforming France, Germany, and Italy, according to the Bank of England. New Prime Minister Keir Starmer aims to double this economic growth rate.

The Barclays survey also revealed that confidence in the UK economy reached its highest level since February 2022. However, respondents were less optimistic about their household finances, with a third expressing concern over a rise in water utility bills announced in July.