Card spending grew just 1.0% in February, while inflation and travel concerns dampen economic confidence
Polling conducted by Barclays between 3-6 March found that confidence in the UK, European, US and global economy all declined following the recent outbreak of conflict in the Middle East. This is in comparison to both research that took place between 24-27 February, and to January’s figures. The most recent data also shows the immediate changes consumers are making to their spending and travel plans, with three in five concerned about the impact on their personal finances.
Confidence in the UK economy dipped two percentage points last week to 23%, down from 25% at the end of February. While confidence remains constrained, for the first time since July 2025, a greater proportion of consumers report feeling more confident in the strength of the UK economy than the global economy.
| Barclays economic confidence measures | |||
| Jan | Feb 24th-27th | Mar 3rd-6th | |
| Strength of the UK economy | 24% | ↑ 25% | ↓ 23% |
| Strength of the European economy | 28% | ↑ 29% | ↓ 26% |
| Strength of the US economy | 28% | ↓ 26% | ↓ 24% |
| Strength of the global economy | 25% | ↓ 24% | ↓ 22% |
Four in five (82%) are concerned about the impact of tensions in the Middle East on fuel costs, energy bills (81%) and inflation (78%). Food prices (76%), supply chain disruption (70%), economic slowdown (69%) and travel disruption (56%) are also areas of concern. A further three in five (59%) cite the potential negative impact on their household finances.
Almost half (46%) are taking action in response, including making the effort to cut energy consumption (16%), reducing discretionary spending (13%), building up a savings buffer (10%) and delaying major spending decisions (10%). A further one in 10 (9%) are reconsidering upcoming travel plans.
Consumer spending remains subdues in February
Consumer card spending increased just 1.0% in February – a rise from 0.8% in January but less than the latest CPIH inflation rate of 3.2%. Essential spend declined -0.6%, but growth in non-essential spending reached a six month-high at 1.8%. Within retail; clothing (3.7%), general retailers and marketplaces (4.6%) and pharmacy, health & beauty (6.4%) all remained in growth.
Harry Styles’ tour sales see stellar month for entertainment
Growth in spending on digital content & subscriptions reached its highest level since August 2021, at 12.2%, driven by streamflation, popular series such as ‘Love Story’ and ‘Bridgerton’, and the rise of emerging premium subscriptions, such as AI and fitness apps. Meanwhile entertainment grew 9.9% in February, an 11-month high, with live shows & concerts the greatest contributor, increasing 14.0%. Transactions peaked on 30 January, when tickets to Harry Styles’ sell-out ‘Together, Together Tour’ went on sale, once again demonstrating the value consumers place in investing in memorable experiences.
Serial savers avoid paying full price
As consumer caution continues, essential spend fell by -0.6, with 63% seeking ways to cut the cost of their weekly shop. One in three (33%) say they always avoid paying full price, and 24% reportedly get a “thrill” from finding a discount. Three in 10 (30%) happily switch brands to obtain better value, while 29% try to maximise loyalty points obtained from travel miles and rewards programmes.
Consumers question value of GLP-1 friendly food
The overall eating & drinking category increased 2.4% in February, with restaurants, cafes & bakeries up 2.9% and bars, pubs & clubs up 3.3%. Takeaways saw less of an uplift, at 1.3%, as 23% say they’re cutting their consumption of fast food and takeaways in an attempt to be healthier. One in three (33%) say health and fitness is a top spending priority for them this year, and 53% overall report focusing more on their wellbeing.
This comes as one in five (19%) say they would like to see more nutritionally-dense meals and snacks made available, while a similar proportion (20%) have noticed more GLP-1-friendly options being advertised. However 49% say they’re confused about the meaning of “GLP-1-friendly” on food packaging, and 44% see these smaller portioned products as a poor value for money.
Jack Meaning, chief UK economist at Barclays said: “This timely insight into consumers’ reaction to the evolving situation in the Middle East highlights perfectly the economic risks for the UK if the conflict doesn’t find a way to de-escalate in short order. The start of 2026 had brought positive signs of growth and improving consumer sentiment. A new, prolonged, bout of uncertainty risks snuffing that out before it has had a chance to really get going.”
Karen Johnson, head of retail at Barclays, said: “February’s data highlights the careful balancing act shoppers face in navigating rising costs amidst global uncertainty. While we’re seeing a continued appetite to spend on categories such as entertainment and wellness – obtaining value for money and savvy spending will remain a strong focus in the months ahead.”
Overall growth figures
| Spend Growth | Transaction Growth | |
| Essential | -0.6% | -1.5% |
| Non Essential | 1.8% | 2.1% |
| OVERALL | 1.0% | 0.7% |
| Retail | 1.3% | 1.0% |
| Clothing | 3.7% | 7.0% |
| Grocery | 0.7% | -0.6% |
| 0.1% | -2.0% |
| 6.1% | 7.4% |
| Household | -2.9% | 0.7% |
| -3.1% | -5.6% |
| -5.8% | 4.8% |
| 0.5% | 1.4% |
| -1.1% | 1.4% |
| General Retailers | 2.8% | 3.8% |
| 4.6% | 6.5% |
| -1.9% | 0.5% |
| -1.6% | -4.7% |
| Specialist Retailers | 4.6% | 0.7% |
| 6.4% | -0.2% |
| -3.4% | -4.3% |
| 6.1% | 2.9% |
| Hospitality & Leisure | 3.6% | 0.7% |
| Digital Content & Subscription | 12.2% | 6.6% |
| Eating & Drinking | 2.4% | -1.8% |
| 2.9% | 0.0% |
| 3.3% | 2.2% |
| 1.3% | -5.9% |
| Entertainment | 9.9% | 9.2% |
| Hotels, Resorts & Accommodation | 1.0% | -3.2% |
| Travel | 1.9% | -0.5% |
| 7.0% | 16.1% |
| -6.9% | -5.1% |
| -0.1% | -3.9% |
| 4.6% | 5.1% |
| Other | -3.7% | -0.6% |
| Fuel | -7.3% | -5.2% |
| Motoring | -3.5% | 6.8% |
| Other Services | -2.1% | -0.3% |
| Insperiences | 4.1% | -3.5% |
| Online | 1.8% | 4.8% |
| Face-to-Face | 0.3% | -1.2% |
Notes to Editors
Across its issuing and acquiring businesses, Barclays sees nearly 40% of the nation’s credit and debit card transactions, which provides us with unique insight into UK consumer spending. Unless stated otherwise, this press release is based on consumer card spending data from Barclays’ issuing business – i.e. Barclays debit card and Barclaycard credit card transactions. It relates to the period 23 January 2025 – 19 February 2025 vs 23 January 2026 – 19 February 2026.
The Barclays Consumer Spend research in this press release was carried out between 24 – 27 February and 4-7 March by Opinium Research on behalf of Barclays. There were 2,000 respondents in each round of research, providing a representative sample of UK consumers by age, gender, region, and income group. Opinium adheres to Market Research Society (MRS) standards for respondent verification and transparency. All respondents were verified through Opinium’s rigorous identity validation and data quality processes.