Consumer card spend with travel agents rose 6% in January

Consumer card spending with travel agents rose by 6% in January, latest Barclays data shows.

 

The figure, which saw transactions rise by 15% over December levels, compares with overall spend growth of just 0.8%.

 

This was “considerably less” than the latest inflation rate of 3.6%, according to the bank’s monthly consumer spend report.

 

Essential spend fell by 1.1%, marking six months of decline, but discretionary spending grew by 1.6%, led by the strong performance of online retail over the January sales period and a boost for both streaming and entertainment.

 

However, airlines suffered a 4.6% decline in spending and a 5.3% drop in transactions.

  

Total card spend on travel last month edged up by 1.4% as transactions fell by 2.5%.

 

Overall retail growth rose to 1.7% in January and online retail spend growth, excluding groceries, reached 5.7%, with its share of overall retail spending reaching its highest level since January 2022, at 59.2%, suggesting shoppers browsed the sales from the comfort of home, the bank noted.

 

Barclays chief UK economist Jack Meaning said: “Improving consumer confidence is absolutely key to the UK’s economic outlook in 2026.

 

“With that in mind, the stabilisation in this month’s survey is an encouraging step in the right direction.

 

“With inflation set to fall quickly in the coming months, interest rates on course to ease and some early signs of resilience in wider activity, the scene is set for confidence to pick up, supporting growth in spending as the year goes on.”

 

Karen Johnson, head of retail at Barclays, said: “Both big and small screen entertainment thrived last month, helped by the buzz around awards season favourites, and people spending more time at home.

 

“This also resulted in growth for online retail, as shoppers seemingly held out for the January sales.

 

“Specialist foods stores, in particular, saw a boost, with premiumisation of pantry staples boosting sales, particularly those supporting health goals, even when sticking to a budget.”