Card spending grew almost 8% during July compared to the same period in 2021, and nearly 2% compared to June 2022, as Brits spent more on clothing, beauty and staycations as the summer holiday period began.
However, data showed consumers were starting to cut back on overseas travel and eating and drinking out.
Despite spending with travel agents and airlines continuing to grow in July (by 204% and 113% respectively), both categories were down by 4% and 3% month-on-month.
Barclaycard said the drop was likely fuelled by ongoing disruption across the aviation sector as well as 20% of Brits choosing not to holiday overseas this summer and 16% opting for a UK break.