- Staycation spending surges in Dorset, Cornwall
- Retail sales drop as experiences prioritized
- Home improvement spending up by 3%
During the early May bank holiday, Mastercard purchasing data indicates a substantial increase in spending on home improvements and staycations.
During the period, staycation expenditure in Dorset increased by 29% year over year, while it increased by 24% and 13% in Cornwall and Devon, respectively.
The most recent Mastercard SpendingPulse insights data indicates that spending on accommodation in London increased by 11% during the bank holiday.
Retail sales declined 0.6% compared to the previous year as consumers prioritized experiences over tangible goods during the early bank holiday.
As the results indicate, Consumer confidence has reached its highest point since December 2021.
The period saw a 5.6% year-over-year increase in restaurant expenditure.
Restaurant spending increased by 33%, 9%, and 11% in Dorset, Cornwall, and Devon, respectively, year over year.
The data indicates that the quantity of money spent in restaurants in London increased by 1.6% yearly during the specified time frame.
During the early May bank holiday, Britons increased their expenditures in hospitality businesses and spent money on home enhancements.
During the period, there was a 3% increase in spending on home improvements, while spending on furniture and furnishings increased by 10%.
Devon’s spending on household furniture and furnishings increased 25% during the spring, while Cornwall’s increased 17%.
Natalia Lechmanova, chief economist Europe at the Mastercard Economics Institute, stated in an interview with This is Money that individuals have been utilizing the additional time off over the bank holiday weekend to explore various regions of the United Kingdom, dine at restaurants, and prepare their homes for the summer.
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Consumer confidence and purchasing power are on the rise, and a summer of significant events ahead of us, including Taylor Swift’s European tour. As a result, we are observing a rising trend in spending on experiences over objects in nearly every region of the UK.
Nevertheless, consumers can now allocate a portion of their discretionary spending toward “things” due to their increased purchasing power.
This is likely to have a positive knock-on effect that will be perceived in the UK economy and throughout Europe.
According to data published by the Office for National Statistics last month, the Consumer Prices Index increased by 2.3% in the year ending in April, a decrease from the 3.2% increase in the year ending in March. The subsequent set of official inflation figures will be published on June 19.
