Travel spending declines in March after five years of growth
Consumer card spending increased 0.9 % year-on-year in March, down from February (1.0 %) and less than the latest CPIH inflation rate of 3.4 %. Essential spending returned to growth (up 0.5 %) for the first time since July 2025 (0.3 %) as fuel prices surged, while discretionary spend growth slowed to 1.1 %, with travel in decline (-3.3 %) for the first time since 2021.
While confidence in the UK and global economies have been impacted by recent events (down from 25 % and 24 % in February to 21 % each in March), overall consumer resilience remains strong. The majority of UK adults report feeling confident in their ability to live within their means each month (71 %) and in their household finances (67 %).
In response to uncertainty around the Middle East conflict, one in seven (14 %) say they are delaying major purchases or financial decisions, while the same proportion are building up a savings buffer in case costs rise. Meanwhile, 74 % anticipate ongoing tensions will continue to impact the cost of living throughout the rest of the year.
| Consumer concerns as a result of tensions in the Middle East | ||
| 3rd-6th March | 27th-31st March | |
| Rising food prices | 76% | 86% |
| Rising energy bills | 81% | 85% |
| Rising oil/gas/fuel prices | 82% | 84% |
| Rising household bills | 76% | 83% |
| Inflation | 78% | 83% |
| Economic slowdown | 69% | 74% |
| Supply chain disruption | 70% | 74% |
| Rising travel costs | 59% | 70% |
| Rising interest rates | 56% | 61% |
| Travel disruption | 56% | 57% |
Travel sees first decline since Covid
After five years of consistent growth, travel spending fell -3.3 %, its first drop since March 2021, before COVID-19 travel restrictions lifted. Within the category, travel agents (-4.6 %), airlines (-4.1 %) and public transport (-2.9 %) all declined. This comes as the majority cite concerns about rising travel costs (70 %) and potential disruption (57 %), while 11 % say they’re cancelling intended travel plans.
Spend on hotels, resorts & accommodation increased 1.2 %, potentially due to a preference for UK-based “staycations” and a rise in domestic bookings during the Easter break.
Clothing, beauty and entertainment show resilience
Non‑essential spending growth slowed to 1.1 % in March, but momentum held up in several categories. Digital content and subscriptions rose 10.9 %, while health and beauty grew by 6.3 %. Overall retail spending increased modestly by 1.6 %, led by a standout month for clothing, up 3.6 %. General retailers and marketplaces recorded growth of 4.4 %, with specialist retailers outperforming at 5.0 %.
Entertainment extended its run of growth for the 19th consecutive month, rising 3.5 % as transaction volumes increased 7.2 %. Cinema spending was up 5.5 %, boosted by the box office success of Project Hail Mary and family release Hoppers.
Against a backdrop of wider cost pressures, essential spending edged up 0.5 % – its first increase since July 2025 (0.3 %). This was largely driven by a 1.6 % rise in fuel spending, the category’s first increase since February 2023 (5.2 %). Spending jumped 10.9 % year‑on‑year in the week commencing 28 February as drivers filled up ahead of price rises, but the peak quickly tailed off, with spending returning to last year’s levels throughout March.
Jack Meaning, chief UK economist at Barclays, said: “Shoppers delaying major purchases and building up a savings buffer in response to the shock from the Middle East reinforces our view that activity will be muted in the coming months. With an interest rate decision due in less than three weeks’ time, the Bank of England will need to consider how to balance this softening economy with the inflation already taking effect. Our modelling suggests this balance is best struck by holding rates, containing the worst of inflation without unduly squeezing consumers.”
Karen Johnson, head of retail at Barclays, said: “March’s figures may highlight some differences between how consumers feel and how they actually spend. Cost-of-living concerns and economic uncertainty continue to weigh on confidence, prompting caution and a desire to cut back, but spending remains resilient across several categories, namely clothing, entertainment and digital content & subscriptions. Many are once again carefully managing their money while finding ways to prioritise the things that matter the most to them – an ongoing balancing act.”
Overall growth figures
| Spend Growth | Transaction Growth | |
| Essential | 0.5% | -1.2% |
| Non Essential | 1.1% | 1.4% |
| OVERALL | 0.9% | 0.4% |
| Retail | 1.6% | 0.8% |
| Clothing | 3.6% | 6.9% |
| Grocery | 0.8% | -0.8% |
| 0.4% | -2.2% |
| 4.1% | 6.9% |
| Household | -2.3% | 0.5% |
| -2.5% | -4.2% |
| -2.6% | 4.8% |
| -2.9% | -2.2% |
| 2.0% | 1.8% |
| General Retailers | 3.2% | 3.3% |
| 4.4% | 5.3% |
| 0.5% | 2.7% |
| -0.7% | -4.6% |
| Specialist Retailers | 5.0% | 1.5% |
| 6.3% | -1.2% |
| -2.0% | -4.8% |
| 6.6% | 6.3% |
| Hospitality & Leisure | 0.9% | -0.6% |
| Digital Content & Subscriptions | 10.9% | 5.4% |
| Eating & Drinking | 1.5% | -3.1% |
| 2.6% | -1.0% |
| 1.8% | -0.4% |
| -0.3% | -6.9% |
| Entertainment | 3.5% | 7.2% |
| Hotels, Resorts & Accommodation | 1.2% | -4.2% |
| Travel | -3.3% | -1.6% |
| -4.6% | 9.2% |
| -4.1% | -3.6% |
| -2.9% | -4.3% |
| 0.8% | 2.9% |
| Other | -0.8% | 1.4% |
| Fuel | 1.6% | -1.5% |
| Motoring | -3.9% | 6.4% |
| Other Services | -0.3% | 1.3% |
| Insperiences | 3.7% | 0.0% |
| Online | 1.1% | 4.0% |
| Face-to-Face | 0.7% | -1.2% |