Consumer spending surges 13.7% in February

Consumer card spending grew year-on-year by 13.7% in February, the highest growth since November 2021, as the economy reopened following the lifting of Plan B restrictions and work-from-home guidance.

Though the travel sector is still in decline at -13.9%, the industry had its “best” month since before the pandemic, as 33% of Brits said they are making more social or holiday plans for the rest of the year as restrictions ease.

Spending on hotels, resorts and accommodation grew 7.4% in February, while airlines saw “significant” improvement at a decline of -10.9% compared to -42.3% in January. 

Additionally, travel agents are also seeing recovery, falling -15.0% compared to -41.7% last month. 

Staycations have remained a “popular” choice for holidaymakers, with 42% of consumers spending more on social or holiday plans prioritising spending on holidays in the UK.

Spending on non-essential items also saw strong growth of 14.5%, the “sharpest” increase since November 2021 at 18.3%, as Brits spent more on discretionary items, holidays and experiences following the easing of restrictions. 

Despite 46% of consumers expecting inflation will affect their household budgeting in 2022, 23% said they will spend more on experiences to “create great memories” and less money on physical items – a figure that rose to 37% for 18–34-year-olds.

José Carvalho, head of Consumer Products at Barclaycard, said: “The strong uplifts across both retail and hospitality show that the nation is keen to make the most of life following the easing of Plan B restrictions, with many Brits still purchasing treats to give themselves a boost, and making social and holiday plans for the year ahead.

“As inflation starts to have an impact on consumer confidence, we’re seeing a shift in spending habits as Brits seek more value from their purchases, particularly on supermarket shopping, which saw its smallest growth since February 2020.”