Card spending grew 2.1 percent year on year in August 2026, a 13-month high after 2.0 percent in July, according to the Barclays Consumer Spend report published 8 September 2026. That is below CPIH inflation of 3.1 percent, so spending volumes are flat or falling in real terms.
TL;DR · LAST REVIEWED Card spending grew 2.1 percent year on year in August 2026, a 13-month high after 2.0 percent in July, according to the Barclays Consumer Spend report published 8 September 2026. That is below CPIH inflation of 3.1 percent, so spending volumes are flat or falling in real terms.
- Card spending grew 2.1 percent year on year in August 2026, a 13-month high, after 2.0 percent in July, per the Barclays Consumer Spend report published 8 September 2026.
- The growth rate is below CPIH inflation of 3.1 percent, so real-terms spending volumes are flat or falling.
- Travel spending rose 3.1 percent after five months of decline, with airlines up 3.5 percent, travel agents 4.4 percent and hotels 3.3 percent.
- Fuel spend rose 13.2 percent, a pump-price effect rather than a volume increase.
KEY FACTS
- Card spending growth, August: +2.1% (13-month high)
- CPIH inflation: 3.1%
- Travel: +3.1% after five months of falls
- Fuel spend: +13.2%
- Worried about shrinkflation: 77%
Headline figures
Source: Barclays Consumer Spend, 8 September 2026.
Card spending grew 2.1 percent year on year in August 2026, a 13-month high, according to the Barclays Consumer Spend report published on 8 September 2026. The figure follows growth of 2.0 percent in July. Essential spending and non-essential spending both grew 2.1 percent. The data covers 24 July to 20 August 2026 compared with 25 July to 21 August 2025, based on Barclays debit card and Barclaycard credit card transactions. Barclays sees nearly 40 percent of UK card transactions, which is why the series is watched as a guide to household demand.
The 2.1 percent growth rate sits below the latest CPIH inflation rate of 3.1 percent. That gap matters. When nominal spending grows more slowly than prices, the volume of goods and services bought is flat or falling. In other words, the 13-month high in the headline rate does not mean households are buying more. It means they are paying more for roughly the same basket, or a slightly smaller one. The report also draws on Opinium research of 2,000 UK adults conducted between 21 and 25 August 2026.
Confidence measures were mixed. Confidence in household finances rose to 66 percent in August from 64 percent in July, the highest in six months. The proportion saying they can live within their means rose to 71 percent from 69 percent, and the proportion able to spend on non-essentials rose to 54 percent from 53 percent. Confidence in the UK economy fell to 26 percent from 30 percent in July, against a 2026 average of 24 percent. Job security stood at 44 percent. Rohan Kumar, Head of Spend Insights at Barclays, said card spending reached a 13-month high while confidence in personal finances showed signs of recovery.
Where the money went
Travel was the clearest turnaround in the month. Travel spending rose 3.1 percent after five months of decline. Airlines rose 3.5 percent, the first growth since August 2025. Travel agents rose 4.4 percent and hotels, resorts and accommodation rose 3.3 percent. The report also found that 36 percent of people chose UK staycations versus 33 percent going abroad, and 14 percent were actively seeking travel deals. Hospitality and leisure rose 3.3 percent. Entertainment rose 5.9 percent, led by cinemas and bowling alleys, with summer blockbusters cited as a factor. Eating and drinking rose 1.8 percent, with pubs, bars and clubs up 2.7 percent and restaurants, cafes and bakeries up 1.5 percent.
Retail spending rose 1.2 percent. Electronics rose 2.0 percent and clothing rose 0.9 percent. Grocery spending rose 0.4 percent, with supermarkets down 0.2 percent. Digital content and subscriptions rose 7.2 percent. Online spending rose 2.6 percent and face-to-face spending rose 1.7 percent. Garden centres fell 3.8 percent. Fuel spending rose 13.2 percent, by far the largest line in the report. That fuel figure is a pump-price story rather than a volume story: it reflects what motorists paid per litre rather than a surge in miles driven, and it matches the pattern seen in the RAC and DESNZ fuel price series.
The report also captured a seasonal mood shift. After the UK's hottest summer on record, 41 percent of people said they were ready for summer to end, and 35 percent said they were doing a September reset. Jack Meaning, Chief UK Economist at Barclays, said: 'Consumer spending and confidence remained resilient in August, even as pressures from the Middle East began to filter into prices.'
Price worries
Concern about prices remains widespread. 84 percent of those surveyed were concerned about rising prices. 77 percent were concerned about shrinkflation, where pack sizes shrink while prices hold or rise, and 76 percent were concerned about skimpflation, where the quality or quantity of an ingredient or service is reduced. Chocolate and sweets were the most noticed category for shrinkflation at 46 percent, followed by crisps at 31 percent, dairy at 24 percent and bread at 21 percent. These concerns sit alongside the price rules introduced under the Digital Markets, Competition and Consumers Act 2024, which banned drip pricing, meaning mandatory fees not shown in the headline price, from 6 April 2025. The Competition and Markets Authority enforces those rules.
Pricing practices drew specific attention. 72 percent of people were concerned about drip pricing and 71 percent about dynamic pricing, where prices change in response to demand. The summer heatwaves also fed into food price worries: 70 percent were concerned about vegetable prices and 69 percent about dairy prices. These concerns are consistent with the wider inflation picture. With CPIH at 3.1 percent and card spending growth at 2.1 percent, households are seeing prices rise faster than their spending, which puts pressure on volumes and reinforces the attention paid to pack sizes, ingredient quality and headline pricing.
Meaning pointed to Middle East pressures filtering into prices and described the prospect of a temporary inflation bout. For households, the practical effect is that headline spending growth can look healthy while the amount actually bought stays flat. The Barclays series is watched closely because it covers nearly 40 percent of UK card transactions, giving an early read on how consumers respond as prices move. Press contact for the report is Dee Fallon at deirdre.fallon@barclays.com.
KT analysis
The central number in the report is the gap between 2.1 percent spending growth and 3.1 percent CPIH inflation. On those figures, real-terms spending fell. A 13-month high in nominal growth is not the same as a recovery in volumes. The month was carried by travel and entertainment, two categories that are discretionary and seasonal, and by fuel, which is a price effect. Strip out fuel and the picture is softer: grocery grew 0.4 percent with supermarkets down 0.2 percent, clothing grew 0.9 percent and garden centres fell 3.8 percent. Those are the lines that speak to everyday household budgets.
The fuel line deserves separate treatment. A 13.2 percent rise in fuel spending is consistent with pump prices rather than with more journeys. The RAC and DESNZ series track the same movement in forecourt prices. When a price-driven category is the largest contributor to headline growth, the headline overstates underlying demand. The same logic applies to the inflation comparison: with CPIH at 3.1 percent, a 2.1 percent spending increase implies a real-terms decline of roughly one percentage point, all else equal.
The confidence split is also worth noting. Personal finance confidence improved to 66 percent, its highest in six months, while confidence in the UK economy fell to 26 percent from 30 percent. Households appear more comfortable about their own budgets than about the wider economy. That pattern is consistent with resilient spending on travel and entertainment alongside caution on groceries and discretionary retail. The price concerns in the survey, from shrinkflation at 77 percent to drip pricing at 72 percent, tie directly to the CMA's enforcement of the DMCC Act price rules. Those rules came into force in April 2025 and remain the main regulatory lever on how prices are presented to consumers.
Source: Barclays newsroom, 8 September 2026.
Related coverage on Kael Tripton: What Is Inflation?, Is My Pay Keeping Up With Inflation? UK Real Wages Explained, UK Inflation Statistics: CPI, CPIH and RPI Data, UK Inflation Explained: How CPI Is Measured and What It Means for Your Money, Sainsburys Travel Money: Euro Rate, Euros, Currency and Holiday Money.
For press offices Kael Tripton reports releases from UK public bodies, operators, regulators and consumer brands, with your images credited and a link to your newsroom. Publication is an editorial decision and is never sold. |
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DISCLAIMER
Figures are Barclays' own card data and Opinium research; they are not official statistics.
Frequently asked questions
How much did UK card spending grow in August 2026?
Card spending grew 2.1 percent year on year in August 2026, a 13-month high, after 2.0 percent in July, according to the Barclays Consumer Spend report published 8 September 2026.
Is the 2.1 percent growth ahead of inflation?
No. The latest CPIH inflation rate was 3.1 percent, so spending growth of 2.1 percent was below inflation, meaning real-terms volumes were flat or falling.
Which categories drove spending in August 2026?
Travel rose 3.1 percent after five months of decline, entertainment rose 5.9 percent, hospitality and leisure rose 3.3 percent, and fuel rose 13.2 percent. Grocery rose 0.4 percent with supermarkets down 0.2 percent, and garden centres fell 3.8 percent.
What did the report say about consumer confidence?
Confidence in household finances rose to 66 percent from 64 percent in July, the highest in six months. Confidence in the UK economy fell to 26 percent from 30 percent. Ability to live within means was 71 percent and ability to spend on non-essentials was 54 percent.
What are the concerns about shrinkflation and drip pricing?
84 percent of those surveyed were concerned about rising prices, 77 percent about shrinkflation and 76 percent about skimpflation. 72 percent were concerned about drip pricing and 71 percent about dynamic pricing. Drip pricing was banned under the Digital Markets, Competition and Consumers Act 2024 from 6 April 2025, enforced by the CMA.
