UK households cut credit and debit card spending in April for the first time in 18 months as rising energy costs linked to the Middle East conflict weakened consumer confidence and hit demand for travel and other non-essential purchases.

According to data published by Barclays, overall card spending fell 0.1 per cent year-on-year in April, marking the first annual decline since November 2024. The bank, which processes nearly 40 per cent of UK card transactions, said non-essential spending dropped 0.3 per cent as consumers curtailed discretionary purchases.

The sharpest declines were recorded in travel-related categories. Barclays said travel spending fell 5.7 per cent in April, while spending on airlines declined 8.3 per cent as concerns over fuel prices and potential supply shortages disrupted holiday plans. Passenger volumes at Heathrow Airport fell five per cent to 6.7 million during the month, with the airport attributing weaker traffic partly to the ongoing conflict in the Middle East.

Barclays said essential spending rose 0.3 per cent, driven by a 10.4 per cent increase in fuel purchases, the largest rise since December 2022 following Russia’s invasion of Ukraine. Oil prices climbed after disruption to shipping routes near the Strait of Hormuz raised fears over global supply constraints.

Jack Meaning, chief UK economist at Barclays, said: “This data shows consumers are already adapting in response to the shock from the Middle East, for instance, by building up a savings buffer.”

A survey released alongside the spending figures found that 72 per cent of consumers expected tensions in the Middle East to affect their cost of living during 2026. Confidence in non-essential spending fell to 49 per cent, its lowest level since March 2023, while confidence in the global economy dropped to 20 per cent.

Meaning said: “The key unknown for the UK outlook is how long this uncertainty will last. If confidence remains subdued for too long, and consumers continue to limit their spending as a result, it will be a challenge for households and businesses to weather the storm.”

---