The level of growth in consumer card transactions with travel agents fell back in January but was still up 13.5% over the same peaks month last year.
The January figure compared with 17.8% year-on-year growth in December.
Data released by Barclays today (Tuesday) shows a year-on-year spend increase with agents of 5.8% but this was down on December’s figure of 7.5% compared with the same month in 2023.
The level of spend growth with airlines was 5.5% in January but with transaction levels down 0.5%.
Travel overall recorded spend growth of 5.5% and transactions growth of 3.3% – both improvements on December.
The bank’s analysis suggested essential spending returned to growth, up 0.1% after four consecutive months of decline.
Total credit and debit card spending grew 1.9% year-on-year in January – the highest uplift since March 2024, but remaining lower than the latest consumer price index inflation rate of 3.2%, according to the bank.
The share of online retail spending, excluding groceries, reached a three-year high, at 58%, as 13% of consumers said they opted to shop at home due to the wet and cold weather during the month.
Total non-essential spending grew 2.7%, led by the resilient performance of entertainment, health & beauty and digital content and subscriptions.
Barclays head of retail Karen Johnson said: “January’s figures are a positive signal that non-essential spending should remain strong in 2025.
“Despite expressing economic uncertainty and a cost-cutting mindset, shoppers are continuing to prioritise the things love – entertainment, wellness and evenings with family and friends.
“Social media is increasingly influencing purchasing decisions – whether it’s a trending beauty product or a must-visit holiday destination.
“Looking ahead to February, which brings Valentine’s Day and half term for schools, it’s likely we’ll see more of this careful balancing act, with people continuing to seek out deals and discounts to enjoy the good times without breaking the bank.”
The bank’s chief UK economist Jack Meaning said: “With the economy looking like it stagnated in the second half of last year, we’re expecting GDP growth to pick up to 0.9% in 2025. This will have been aided by Thursday’s reduction in interest rates by the Bank of England.
“We expect Bank rate to fall to 3.5% before the end of the year, which should give a further boost to consumers who will once again feel the pinch as inflation rises in the coming months, albeit it temporarily.”