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Spending boost for travel bucks overall trend

Spending on travel rose considerably in July, according to Barclays figures, meaning the sector bucked the overall trend.

The bank’s analysis of card data revealed a 6.6% spend growth at travel agencies alongside a transaction growth of 10.5%.

It came as holidaymakers paid off the last of their monthly instalments, Barclays said.


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Overall data showed total consumer card spending in July fell by 0.3% year on year – a slight improvement on June, which recorded a 0.6% fall – while transactions rose by 1.1%.

Non-essential spending fell by 0.7% year on year, with transactions growing by 1.3%.

The travel sector as a whole recorded spending growth of 4.3% alongside transaction growth of 5.6%.

Airlines registered a spend growth of 0.8% and transaction growth of 0.6%, while public transport recorded spend growth of 0.2% and transaction growth of 0.6% and other travel registered figures of 7.1% and 17.8% respectively.

Barclays said two in five survey respondents (39%) reported that July’s rainy weather led them to cut back on ‘summer spending’.

The average UK resident reduced their outgoings by £133.40, the bank said, with people in the 18-34 age bracket cutting back the most at £158.40. Home improvements and DIY recorded a 7.5% fall in spending year on year, while sports and outdoor registered a decrease of 7.9%.

Barclays head of retail Karen Johnson said: “Shoppers and retailers alike will be ready to see the end of the summer showers. It’s encouraging to see seasonal staples such as BBQ supplies, beauty buys and holiday planning delivering signals of steady recovery.”

She added that she hoped summer spending would be strong in August.

Jack Meaning, chief UK economist at Barclays, said: “While weather, sports events and concerts all look to have resulted in seasonal fluctuations, the bigger picture is that consumers are seeing their incomes and spending power rise and are becoming more confident in the overall economic outlook.

“This, coupled with the fact that the Bank of England has begun to reduce interest rates, should translate into stronger underlying spending growth as we move through the second half of this year and into 2025.”

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