UK business travel continued to grow in July, albeit at a slower pace than seen in June, with 1.56 billion extra miles travelled ¨C a 14.4 per cent month-on-month increase compared to 30.2 per cent the previous month, according to customer data analysis by business fuel and credit card provider Allstar Business Solutions.

The findings are from Allstar¡¯s latest Business Barometer Monthly Snapshot, which tracks business vehicle mileage and credit card data from more than 50,000 companies as an economic indicator of sector recovery. The figures are also extrapolated to the full business population based on Allstar¡¯s estimated UK commercial fuel market share.

According to Allstar, the upward trajectory of business travel within the UK may have been interrupted by the start of the school summer holidays. The education sector was the most impacted, dropping from a peak of 216 per cent growth against the April height-of-lockdown baseline in mid-July to 159 per cent by the end of the month. Real estate, agriculture and construction also saw minor decreases of 8 per cent, 1 per cent and 1 per cent respectively by the end of July. Meanwhile, the arts, recreation and entertainment sector saw a growth rate of 19 percentage points and wholesale and retail were up 8 per cent.

Data on credit card usage shows spend reached 82 per cent of its Q1 average in the UK, with in-person transactions overtaking e-commerce for the first time since the country went into lockdown in March (52 per cent versus 48 per cent, compared to a ratio of 33/67 in March). With the easing of restrictions and the reopening of parts of the economy beginning in June and July, there was also a 104 per cent increase on spend in restaurants and a 42 per cent increase at hotels.

Paul Holland, MD of UK fuel at Allstar¡¯s parent company Fleetcor, commented: ¡°The Bank of England predicted that the economic shock triggered by the pandemic was less than initially feared but the bounce-back may take longer, and this fuel consumption data appears to illustrate this. The sectors impacted hardest by lockdown are showing signs of reactivation, albeit with growth continuing at a steadier rate than when restrictions first began lifting.

¡°It¡¯s not surprising that the upward trajectory has been affected by the start of the school summer holidays; this is a trend we see from our business customers each year. And whilst it is possible that further slowing of the recovery will continue throughout August as workers take holidays delayed from earlier in the year, we are in uncharted territory and the traditional seasonal downturn may be offset by the return of furloughed employees.

¡°It has been interesting to see in-person credit card transactions overtake e-commerce in July, with a significant increase in business expenses in restaurants and hotels. We will be watching closely in August to see if [chancellor] Rishi Sunak¡¯s Eat Out to Help Out scheme boosts spending among businesses in addition to consumers.¡±