Consumer spending on credit and debit cards rose by 9.9% in July compared to the same month last year, according to new figures released by Barclaycard yesterday.
The research suggests traditional summer discounting by retailers has enticed consumers back to the high street, with the amount spent on cards, in-store and online, increasing by nearly double digits last month. Year-on-year figures have steadily increased since the start of 2010, with July being the third month in a row that these figures have increased by more than 9%.

The figures run contrary to recent reports of a dip in consumer confidence, said the report, suggesting a gap between what consumers say about their financial prospects and how they behave, with spending on the high street remaining strong.

Head of Barclaycard UK payment acceptance Stuart Neal said: "If consumer confidence is taking a hit, it's not happening on the high street. If spending remains at this level compared to last year, 2010 could prove overall to be a very good year for retailers."

Compared to June, spending increased slightly in July by 1.9%, which the report attributed partly to consumers taking advantage of the earlier start to summer sales and partly to July having 31 days compared to June's 30.

The Barclaycard Spending Index is based on spending on all credit and debit cards, across 44 retail sectors at retailers that use Barclaycard payment acceptance to process these transactions for them.