British consumer spending saw a modest annual increase in August, driven by a rise in food and drink purchases during the warm summer weather, according to surveys released

on Tuesday. These findings contribute to the growing evidence of steady economic growth in the UK during the latter half of 2024.

Barclays reported a 1.0% year-on-year increase in consumer spending on its credit and debit cards for August, reversing two consecutive months of decline.

In a separate report, the British Retail Consortium noted a 1.0% annual rise in in-store spending for August, marking the most significant growth since March.

Both surveys highlighted a notable increase in grocery spending, as the warm weather prompted many to enjoy barbecues and picnics.

These reports align with various other consumer and business surveys, indicating that the UK economy is likely to experience solid growth in the second half of the year, though at a slower pace compared to earlier in 2024 when the economy rebounded from a mild recession.

Jack Meaning, Chief UK Economist at Barclays, stated that the survey results support the view that consumer spending will increasingly drive economic growth, which has previously been dependent on government expenditure.

"With rising real incomes and growing consumer confidence, coupled with declining interest rates, consumers are likely to play a more significant role in sustaining economic momentum," Meaning added.

The UK economy emerged from a brief recession in early 2024 and is expected to grow by 1.25% for the year, according to the Bank of England's forecast last month. This growth rate could surpass that of France, Germany, and Italy.

Newly appointed Prime Minister Keir Starmer has expressed his ambition to double the country's economic growth rate. Photo by pudina, Wikimedia commons.