UK consumers have reduced travel spending for the first time in five years, reflecting growing concern about living costs and global instability.
Data from Barclays shows overall card spending rose by just 0.9% year on year in March, slightly down from 1% in February. Within that, travel spending fell by 3.3%, marking the first decline since March 2021. Many households are delaying overseas trips or choosing UK-based breaks instead.
Spending dropped across several travel categories, including travel agents, airlines, and public transport. In contrast, hotel and accommodation spending edged up by 1.2%, supported by increased domestic bookings over the Easter period.
Wider economic concerns are influencing behaviour. Ongoing tensions in the Middle East have led around one in seven adults to delay major purchases or build savings in anticipation of rising energy costs. Although the UK energy price cap fell by 7% in April, it is expected to rise sharply in July due to higher wholesale prices.
Essential spending increased modestly by 0.5%, with fuel spending up 1.6%, its first rise in over a year, driven by higher oil prices. Discretionary spending growth slowed to 1.1%, though clothing and entertainment remained resilient.
Consumer confidence presents a mixed picture. While most people feel secure in their household finances, optimism about the broader UK and global economy has declined. Meanwhile, retail sales grew strongly, rising 3.6% year on year, led by a notable increase in food spending.