Finance
UK consumer spending slows in February as inflation fears dim sentiment, survey shows
Published by Global Banking & Finance Review®
Posted on March 10, 2026
2 min readLast updated: March 10, 2026
Quick Summary
UK consumer spending growth slowed in February, with Barclays reporting a 1.1% year‑on‑year rise (up from January’s 0.8%) but rising anxiety over the Middle East conflict dampening sentiment. The BRC saw retail sales up 1.1%, down from 2.7%, while online non‑food sales slipped further.
UK Consumer Spending Grows Slowly in February as Inflation and War Weigh on Sentiment
Consumer Spending Trends and Economic Sentiment in the UK
Overview of February Spending
LONDON, March 10 (Reuters) - British consumer spending grew slowly in February as households grew more pessimistic about the outlook for the economy with the Middle East conflict raising concerns about a fresh rise in inflation, surveys showed on Tuesday.
Barclays Survey Findings
Barclays said consumer confidence in the strength of the UK, European and global economy all fell in February as the most recent conflict in the Middle East escalates.
Impact on Consumer Confidence
A separate survey from the British Retail Consortium also painted a weak picture with sales growth among retailers dampened by wet weather last month.
Key Insights from Barclays
Barclays said:
Annual Growth and Consumer Concerns
• Consumer spending grew by 1.1% in February in annual terms after a 0.8% increase in January.
• Around four in five consumers surveyed by Barclays were concerned that Middle East conflict will push up fuel prices, energy bills, and inflation.
• Over half were worried about potential disruption to travel.
Consumer Responses to Economic Uncertainty
• Nearly half of shoppers said they were taking action such as reducing energy usage, saving more, and delaying spending on major purchases in response to the war.
• Overall consumer card spending remained subdued in February, but spending on non-essential items hit a six month-high.
British Retail Consortium (BRC) Survey Results
The BRC said:
Retail Sales Performance
• Spending at big retailers rose by 1.1% in annual terms in February, down from January's 2.7%, and far below the 12-month average of 2.3%.
• Online non-food sales fell by 1.3% year-on-year in February, compared to 1.9% in February 2025.
Retailer Sentiment and Outlook
• Helen Dickinson, BRC's chief executive said retailers were hoping to boost sales in the spring, but the conflict in the Middle East "threatens knocking any recovery off course.
• The BRC survey spanned February 1 to February 28.
Reporting
(Reporting by Suban Abdulla)
Key Takeaways
- •Barclays: overall consumer spending picked up modestly (+1.1%) in February, but worries over inflation, fuel costs and disrupted travel due to the Middle East conflict are weighing on sentiment.
- •Barclays survey: about 80% of consumers fear the Middle East conflict may drive up energy and fuel prices; over 50% fear travel disruption; nearly 50% report reducing energy use, saving more or postponing big purchases.
- •BRC data: retail sales growth slowed to 1.1% from January’s 2.7%; online non‑food sales declined 1.3% year‑on‑year; wet weather and geopolitical tensions threaten spring recovery.
- •Additional context: January saw a sharp rebound in UK retail sales—volumes grew 4.5% year‑on‑year, the fastest since 2022—suggesting February’s slowdown may partly reflect normalization after a strong start to the year.
Frequently Asked Questions about UK consumer spending slows in February as inflation fears dim sentiment, survey shows
1How much did UK consumer spending grow in February 2024?
Consumer spending in the UK grew by 1.1% in February 2024, according to Barclays.
2What are the main concerns affecting UK consumer confidence?
Rising inflation linked to the Middle East conflict, higher fuel and energy costs, and economic pessimism are the main concerns.
3How did retail sales perform in February?
Retail sales at big retailers rose by 1.1% annually, down from January's 2.7% and below the 12-month average.
4What actions are consumers taking in response to economic worries?
Consumers are reducing energy usage, saving more, delaying major purchases, and monitoring spending.
5How has the Middle East conflict impacted spending and sentiment?
The conflict has increased concerns about higher inflation and disrupted consumer confidence and retail sales.
