Spend on air travel in August reached £73 million, with transactions up 26% year on year. Although the figure may illustrate a booming late sales market, total spend was down 8% on the previous month.
Spend on holidays in August rose 4% year on year to £370 million, with transaction levels up 1%. Spend on flights in July was up 33% year on year and holidays up 6%.
The latest figures come despite Nationwide warning money worries have hit their highest level this year, with 69% of consumers concerned about their ability to cover essential costs. Nationwide said this concern had begun to turn down downwards in the middle of this year but had risen from 57% two months ago to the latest high.
Nationwide’s Spending Report analysed more than 241 million debit and credit card transactions and polled 2,000 consumers. It found 32% of those surveyed were left with £100 or less in their account at the end of each month, with nearly one in ten saying they had no money left.
The poll also revealed the average person now had a credit card debt of £8,000.
Housing costs were highlighted by Nationwide, with spending on mortgage payments in August up 11% year on year, while rent payments increased 19%.
The amount spent on paying off loans reduced by 5% year on year, while repayments to credit cards increased by 5%. Spend in discount stores rose 28% per cent year on year, with the number of transactions jumping 43%.
Mark Nalder, Nationwide’s payments strategy and performance director, warned of a potentially tough autumn: “Money worries have peaked this year, which is perhaps not a surprise after many people juggled the expectation to spend during the summer with continued high living costs,” he said.
“As we enter the autumn, households will hope for some respite before the return of colder weather and the need to heat homes once again.
“While energy costs have dipped from their peak last year, the return of high utility bills will not be a welcome sight for many. Just as we saw last year, we expect many to cut back into their discretionary spending in order to manage their budgets.”
