DAVY VIEW

UK consumer spending rebounded faster than other countries, up 7% in Q2, after the retail sector re-opened in April. Retail sales volumes in Q2 2021 were 9% higher than pre-pandemic levels. So the news that UK retail spending contracted by 2.5% in July may simply be a case of consumers catching their breath after a busy Q2. Credit/debit card spending data, including consumer facing services such as hotels, restaurants and transport, point to an on-going rebound in household spending continuing into August.