UK consumer spending spring 2026

Consumer Spending Hits 13-Month High – Credit Connect

  • Emma
  • Cost of living, Finance, Financial Data

Estimated reading time: 6 minutes

Key Takeaways

  • In August, consumer spending rose 2.1% year on year, aided by improved travel and entertainment confidence.
  • Despite growing consumer confidence, concerns about rising prices, shrinkflation, and value persist among shoppers.
  • Travel spending saw significant growth of 3.1%, while leisure spending increased by 3.3%, fueled by a strong summer.
  • Economists warn that global risks and price pressures may continue to impact consumer spending in the future.
  • Overall, consumers remain cautious even with signs of recovery in spending and confidence.

Summary

Barclays have said August card spending rose as consumer confidence improved. Travel, entertainment, and leisure all helped.

Even so, many consumers still focus on value. They worry about rising prices, shrinkflation, skimpflation, drip pricing, and dynamic pricing. Household bills also stay front of mind.

Economists said spending was still resilient. But they warned that price pressure and global risks could still weigh on households.

Card Spending Growth

Card spending rose 2.1% year on year in August. That was a little above July’s 2.0% rise, but still below CPIH inflation of 3.1%.

Essential and non-essential spending both rose 2.1%. Better confidence and strong leisure spending helped.

Consumer Confidence

Confidence in household finances reached its highest level in six months, at 66% in August, up from 64% in July.

People also felt more confident about:

  • Living within their means: 71%, up from 69%
  • Spending on non-essentials: 54%, up from 53%

Confidence in the UK economy stood at 26%. That was below July’s 30%, but above the 2026 average of 24%. That suggests confidence is settling.

Confidence in the European and global economies also returned to June levels, at 29% and 26%.

Cost-Conscious Consumers

Even with better confidence, most people still watch spending closely:

  • 72% worry about drip pricing and extra checkout fees
  • 71% worry about dynamic pricing, where prices change with demand
  • 84% worry about rising prices
  • 77% worry about shrinkflation, where product size falls
  • 76% worry about skimpflation, where product quality falls

Product Quality Concerns

Chocolate and sweets are the items most often said to have fallen in quality:

  • Chocolate and sweets: 46%
  • Crisps: 31%
  • Dairy products: 24%
  • Bread and bakery products: 21%

Shoppers are also thinking about how recent heatwaves may affect the price and supply of some foods, especially vegetables, fruit, and dairy products.

Travel Spending

Travel spending rose 3.1% in August. That was the highest level so far this year, and a sharp change after five straight months of decline.

Within the category:

  • Airline spend rose 3.5% for the first time since August 2025
  • Travel agents saw a 4.4% rise
  • Hotels, resorts, and lodging grew 3.5%

More travellers chose UK staycations over trips abroad in 2026, 36% versus 33%.

Meanwhile, 14% are looking for travel discounts, offers, and last-minute deals.

Leisure, Food and Entertainment

Travel’s strong result helped leisure spending rise 3.3%.

Entertainment was one of the biggest winners of the month, up 5.9%. Cinemas and bowling alleys led the way, as many people looked for air conditioning and went out to see summer blockbusters such as The Odyssey and Spider-Man: Brand New Day.

Eating and drinking rose 1.8%, with gains in:

  • Pubs, bars, and clubs: 2.7%
  • Restaurants, cafes, and bakeries: 1.5%

Retail spending increased 1.2%.

End-of-Summer Sentiment

After the UK’s hottest summer on record, two in five people, or 41%, say they are ready for the season to end.

Almost half of UK adults, 46%, say they enjoyed this summer less because of the heatwaves. And 53% are looking forward to cooler autumn weather.

Beyond the heat:

  • 48% are looking forward to autumn activities
  • 41% want to wear autumn clothing
  • 35% are looking forward to a ‘September reset’ — treating September like a second New Year, with a chance to get organised, set goals, and get back into a routine

Barclays Commentary

Rohan Kumar, head of spend insights at Barclays, said card spending kept building in August and hit a 13-month high. Consumer confidence also showed signs of recovery.

Growth in optional spending, plus strong travel, eating and drinking, and entertainment, helped lift leisure spending.

Many people ended summer with holidays, social events, and other experiences in mind. Price and value worries still stayed front of mind.

Jack Meaning, chief UK economist at Barclays, said consumer spending and confidence stayed steady in August, even as pressure from the Middle East began to show up in prices.

He said consumers should be able to cope with the short spell of inflation expected ahead. But risk still remains.

If the situation in the Middle East goes on or worsens, squeezed households may need to be even more careful with spending.

Barclays Consumer Confidence Measures

Confidence Measures

  • Household finances
  • Job security
  • Ability to spend on non-essentials
  • Ability to live within means
  • Strength of the UK economy
  • Strength of the European economy
  • Strength of the global economy

Heatwave Concerns

Are you concerned about the price and availability of each of the following, as a result of recent heatwaves?

  • Concerned about price
  • Concerned about availability

Q&A

Question: What drove the 13-month high in consumer spending in August?

Barclays pointed to stronger travel, entertainment, and leisure spending. Entertainment rose 5.9%, travel rose 3.1%, and leisure rose 3.3%. That shows people still chose holidays, social events, and experiences at the end of summer.

Question: Did spending growth outpace inflation?

No. Card spending rose 2.1% year on year in August, but that was still below CPIH inflation of 3.1%. That means spending rose in cash terms, but inflation may still be eating into real gains.

Question: Why are consumers still described as cost-conscious despite improved confidence?

Confidence in household finances improved to 66%, but people still worry about value and pricing pressure. Large majorities reported concerns about rising prices, drip pricing, dynamic pricing, shrinkflation, and skimpflation. That shows households are still watching what they spend and what they get back.

Question: Which sectors saw notable improvements in August?

Travel, entertainment, and eating and drinking all improved. Airline spending rose for the first time since August 2025, travel agents and lodging posted gains, entertainment got a lift from cinema and bowling activity, and pubs, bars, clubs, restaurants, cafes, and bakeries all grew.

Question: What risks could affect consumer spending in the coming months?

Barclays highlighted price pressure and global risks, especially developments in the Middle East. Jack Meaning said consumers seem resilient, but if the situation goes on or gets worse, squeezed households may become even more careful with spending.

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