By James Rodger

Copyright birminghammail

Barclays has issued a warning to anyone with a debit or credit card amid a “subdued” outlook for the rest of the calendar year. Ahead of the Labour Party Autumn Statement in November, Barclays says consumer confidence in the UK, European and global economy all rebounded in August, Consumer card spending grew just 0.5 per cent year-on-year in August, down from 1.4 per cent in July and lower than the latest CPIH inflation rate of 4.2 per cent. Essential spend declined, however discretionary spend rose 2.0 per cent, as clothing, furniture and health and beauty stores all performed well. Insperiences and leisure both saw an uplift, led by entertainment and digital content and subscriptions. READ MORE NS&I warning for anyone with over £350 invested in Premium Bonds Karen Johnson, Head of Retail at Barclays, said: “Encouragingly, confidence in household finances remained steady in August, suggesting that while the cost of living is still front of mind, consumers are learning to navigate the challenges and make the most of their budgets. “It’s clear that the ‘lipstick effect’ is having an impact outside of beauty, with shoppers treating themselves to feel-good purchases for themselves and their homes. “Similarly entertainment and travel continue to benefit from consumers’ appetite for fun and memorable experiences, with KPop Demon Hunters emerging as a big winner this summer.” Jack Meaning, Chief UK Economist at Barclays, said: “It is great to see consumer confidence improve in August, and households feel the benefit of another Bank of England rate cut. “However, the outlook for the rest of the year remains subdued, particularly as Budget speculation is likely to add to uncertainty for both households and businesses. In our view, it will take further interest rate cuts to provide the economy with a sustained boost.” Barclays sees nearly 40 per cent of the nation’s credit and debit card transactions, which provides us with unique insight into UK consumer spending.