Consumers avoided trips abroad in March, but spent more on clothing

The data, which tracked card spending in the UK between February 20, 2026 to March 26, 2026, showed that spending on essentials grew by 0.5%, driven by a 1.6% increase in fuel spending as the conflict in the Middle East pushed pump prices higher. 

A notably warm March might have helped drive a rally in clothing sales, which grew by 3.6%, the strongest increase since last July. Health and beauty, always a strong category in the Barclays figures, grew by 6.3%. 

Overall retail spending in the Barclays figures grew by 1.6%, below the latest CPI inflation rate of 3%. 

“March’s figures may highlight some differences between how consumers feel and how they actually spend,” said Barclays head of retail Karen Johnson.

“Cost-of-living concerns and economic uncertainty continue to weigh on confidence, prompting caution and a desire to cut back, but spending remains resilient across several categories, namely clothing, entertainment and digital content and subscriptions. Many are once again carefully managing their money while finding ways to prioritise the things that matter the most to them – an ongoing balancing act.”

The drop in travel spending was the first fall since March 2021, which was before Covid-19 travel restrictions ended. Barclays and Opinium surveyed Brits at the end of March and found that 70% were concerned about rising travel costs, while 11% reported cancelling their travel plans. 

Separate data out today from the BRC and KPMG, covering March 1, 2026 to April 4, 2026 showed that total retail sales grew by 3.6% year on year in March. This bumper growth rate was attributed to the early Easter this year, helping drive higher food sales. 

Food sales grew by 6.8%, while non-food sales continued to struggle with 0.9% growth. In contrast to Barclays, the BRC data suggested that clothing sales struggled.

”Demand was robust for computers, toys, and homeware, but clothing and footwear continued to struggle,” said BRC chief executive Helen Dickinson. “The disruption to international travel caused by the Middle East conflict also hit sales of travel-related goods.”

“Retailers hope that the Middle East ceasefire will bring lasting stability, but the outlook remains uncertain. Damage to supply chains has already been done, and rising costs – from shipping and fertiliser to insurance and commodities – are piling yet more pressure onto already stretched retailers.”

Despite the Middle East conflict, the Barclays-Opinium survey showed that the majority of UK adults (71%) say they are confident in their ability to live within their means each month. Two-thirds (67%) also expressed confidence in their household finances.