Spending on flights and holidays continues to grow faster than other sectors, new figures show.
The latest monthly data from Nationwide reveals spending on air travel in March was 37% higher than the same time last year, with spending on holidays up by 16%.
Air travel had the highest year-on-year growth of all non-essential categories, with holidays in third place behind digital goods (up 23%).
Similar figures could be seen in February’s spending data.
Separate research carried out this month shows that more than a quarter (26%) prioritise spending on holidays despite challenges.
The new spending report is based on about 234 million debit card, credit card and Direct Debit transactions. It shows approximately £8.84 billion was spent in March, with overall consumer spending growing 9% year on year, while transactions were up by 8%.
Spending on air travel in March, which stood at £79,408,854, was 17% higher than in February – as was the spend on holidays (£356,359,720).
The total number of air travel transactions last month was 406,384, which was 20% higher than in February and 33% higher than in March last year.
Holidays saw 356,359,720 transactions last month, which was 14% higher than in February and 10% up on March last year.
Nationwide said the report also showed that essential spending peaked in March as a result of inflation and “a range of external factors” pushing up prices.
The essential spend last month rose by 11% year on year, Nationwide said, which is close to double the growth of non-essential spending (6%). The spending gap between the two areas has widened to the second-largest in the last 12 months, after January, with essential spending 43 per cent higher than non-essential spending.
Meanwhile, the separate poll carried out this month shows more than two thirds (67%) are worriedabout the state of their personal finances and ability to cover essential costs. This is up on last month (63%), but down on February (70%).
Mark Nalder, payments strategy and performance director at Nationwide Building Society, said: “With inflation remaining high and the rising cost of living, it’s perhaps unsurprising to see an increase in the number of people concerned about their finances and ability to cover the essential costs. As our data shows, high essential costs are impacting how the nation spends its spare money.
“Despite pressures, discretionary spend remains fairly buoyant as households continue to balance what they need versus what they want. We should expect to see this continue as we approach summer and the weather gets warmer.”
Photo: Van Tay Media