Consumer card spending up in August but beauty sales decline

Both essential and non-essential consumer card spending grew by 2.1% year-on-year in August, helped by improving consumer confidence and the strong performance of hospitality and leisure.

That’s according to the latest data from the Barclays Consumer Spend report, which revealed that overall retail sales saw a 1.2% rise year-on-year in August, with transaction growth up 1.7%.

However, pharmacy, health and beauty sales declined by 0.2%, with transaction sales down 1.7% in August, while clothing sales saw a 0.9% uplift, with transaction growth of 6.1%.

Department stores saw sales decline 2.2% in August, with transaction growth dropping 3.9%.

This comes after the UK’s hottest summer on record, with two in five (41%) consumers saying they are ready for the season to be over. Almost half of UK adults (46%) say they have enjoyed this summer less because of the heatwaves, while 53% are looking forward to cooler autumn weather.

Consumers’ confidence in their household finances reached its highest level in six months, at 66% in August, up from 64% in July. Consumers also reported feeling more confident in their ability to live within their means (71%, up from 69%).

Confidence in the UK economy overall was less encouraging at 26%, lower than July’s 30% (which represented a 21-month high), but higher than the 2026 average of 24%, “suggesting economic confidence is stabilising”.

Rohan Kumar, Head of Spend Insights at Barclays, said: “Card spending continued to build momentum in August, reaching a 13-month high, while consumer confidence showed signs of recovery.

“Growth in discretionary purchases and strong performances across travel, eating and drinking, and entertainment all contributed to a boost for hospitality and leisure, suggesting many finished summer by prioritising holidays, social occasions and memorable experiences, even as price and value concerns stayed firmly front of mind.”

Jack Meaning, Chief UK Economist at Barclays, added: “Consumer spending and confidence remained resilient in August, even as pressures from the Middle East began to filter into prices.

“This positive news suggests consumers should be able to weather the bout of narrowly focused, temporary inflation we think is coming down the track. However, this week has shown risk remains. If the situation in the Middle East persists or intensifies in the coming months, squeezed households may need to be even more discerning with their spend.”