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Taylor-nomics’ has already hit the UK, as new knowledge exhibits pre-sales for Taylor Swift’s Eras Tour boosted shopper spending in July.
Barclays stated shopper card spending was up 4% year-on-year in July, under the speed of inflation and a slower enhance than June, as poor climate hit high-street gross sales.
However leisure spending was a vibrant spot, boosted particularly by live performance ticket gross sales. Leisure gross sales have been up 15.8% in July, as Barclays stated there have been “surges recorded on the pre-release dates for Taylor Swift’s ‘Eras Tour’, and Foo Fighters’ upcoming stadium tour.”
“Regardless of the rising value of residing, leisure is a precedence spending space for a lot of shoppers. One in 10 (11 per cent) is slicing again on different bills to afford tickets to live shows and flicks, whereas an analogous proportion (10 per cent) stated they handled themselves to a live performance or movie ticket in July regardless that they couldn’t actually afford it,” Barclays stated.
US economists have famous the impact Taylor Swift tour dates have had on native economies. When Swift performed at Philadelphia’s Lincoln Monetary Discipline, the regional Federal Reserve particularly famous that the tour boosted the town’s lodge sector.
However whereas the enhance to demand has been welcome within the US, issues is likely to be extra sophisticated within the UK, the place provide constraints have meant any enhance to demand dangers fuelling inflation.
Swift will play three exhibits at Wembley in June 2024, and an extra three in August, in addition to three in Liverpool. The Foo Fighters, in the meantime, will play two live shows on the London Stadium in June 2024, in addition to dates in Manchester, Glasgow, Cardiff and Birmingham.
Esme Harwood, Director at Barclays, stated: “Whereas July’s climate was a wash-out for clothes retailers, it was a ray of sunshine for takeaways and streaming companies, which carried out higher than anticipated. Leisure additionally loved an enormous enhance, largely because of pre-sales for Taylor Swift’s and Foo Fighters’ upcoming stadium excursions.
“With value-for-money nonetheless a serious concern on the grocery store, eagle-eyed shoppers are additionally recognizing indicators of “drinkflation” – “shrinkflation” on alcoholic drinks. This may very well be as a consequence of producers making adjustments to their merchandise forward of the latest adjustments to alcohol responsibility, which imply that drinks are actually taxed in line with energy slightly than kind.”
Abbas Khan, UK Economist at Barclays, stated: “Over the primary half of 2023, excessive inflation charges have weighed on actual family disposable incomes and constrained consumption. On the brilliant aspect, this headwind is predicted to abate over H2 as inflation in important classes akin to power and meals is about to ease.
“Nevertheless, offsetting this, extra households are set to expertise increased mortgage prices as they refix onto increased charges. Accordingly, whereas we don’t anticipate a shopper recession within the coming quarters, progress is more likely to be meagre.”
