According to new data from Barclaycard, consumer spending on agents grew by 48.3% and transactions by 44.6% in October compared to the same month last year. 

Airlines saw a 37.6% increase in consumer spend and a 35.5% uptick in transactions, while domestic hotels, resorts and accommodations saw a 4.7% contraction in spending and 3.4% less transactions than October 2021.

According to the report, overall consumer card spending grew 3.5% year-on-year in October – higher than in September (1.8%) – but well below the 8.8% rise in consumer price inflation. 

Spending on essential items – such as fuel and groceries – increased 5.7% year-on-year, steeper than September’s growth (3.3%), reflecting the impact of rising inflation.

Against a backdrop of political and economic uncertainty, confidence in the UK economy fell sharply to 15%, the lowest level recorded since 2015 – when Barclaycard began tracking this data.

Meanwhile, 92% are worried about the negative impact of rising inflation on their personal finances, with 30% of Brits assessing whether every individual purchase is necessary and a fifth (19%) feeling the cost-of-living squeeze is having a negative impact on their mental health.

Esme Harwood, director at Barclaycard, said: "Rising petrol and supermarket costs continue to bite, but Brits are spending less on energy bills as government support kicks in and people find ways to economise at home.

"With the festive season around the corner, we’re likely to see further cutbacks, as Brits rein in their Christmas spending."