London, United Kingdom. British consumer spending grew slowly in February as households became more pessimistic about the economic outlook, with the Middle East conflict raising concerns about a renewed rise in inflation, surveys published Tuesday showed.
Consumer spending and confidence
Consumer spending increased by 1.1% in February from a year earlier, following a 0.8% annual rise in January. 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.
Inflation, travel and household responses
Around four in five consumers surveyed by Barclays said they were concerned the Middle East conflict would push up fuel prices, energy bills and inflation. Over half said they were worried about potential disruption to travel, and nearly half said they were taking action including reducing energy usage, saving more and delaying spending on major purchases in response to the war.
Retail sales and spending patterns
A separate survey from the British Retail Consortium showed a weak picture, with sales growth among retailers dampened by wet weather last month. Overall consumer card spending remained subdued in February, while spending on non-essential items reached a six-month high.
How are concerns about inflation and travel affecting your spending decisions?
