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  1. ITV Report

Consumer spending increased in wake of Brexit vote

UK bank notes. Credit: Chris Radburn / PA

Consumers' spending increased the week after the EU referendum but there were signs of shoppers adopting a more cautious mindset, according to new data from Barclaycard.

In the week between June 24 and June 30, they noted a 2.14% increase in consumer spending on Barclaycard credit and debit cards, compared to the previous week.

Those behind the report noted spending often goes up at the end of each month, as it coincides with payday for many people.

There was some mixed underlying news, as spending in pubs and restaurants fell back 0.44% and 0.46% respectively in the same period.

The report found people spent less money in pubs and restaurants in the week after the referendum. Credit: PA

While it's too soon to draw long-term conclusions on how spending and sentiment have been affected by the outcome of the referendum, the early indication is that the majority of consumers avoided a knee-jerk reaction.

Spending grew in the week immediately following the vote, suggesting that shoppers were pleased that the uncertainty that has hung over the economy had at least in part been lifted.

– Paul Lockstone, managing director at Barclaycard

Compared to a year earlier, spending across the second quarter of 2016 was up 3.1%.

While short-term confidence appears to have improved, concerns have been raised about the long-term impacts of the UK's decision to leave the European Union.

The report found 43% of consumers expected their household finances to deteriorate as a result of Brexit, and of these, 81% believe the cost of everyday items - such as groceries and petrol - will increase.