New spending data from Barclays reveals Brits are continuing to prioritise spending on overseas holidays this year by cutting back yet further on essential purchases.
However, growth in spending with agents specifically – after several months of growth – slowed almost to a standstill in June, according to Barclays.
In May, the bank found spending on airfares and with travel agencies took another big leap, outpacing all other areas of consumer spend
It came after spending on travel in March – particularly with travel agents – continued to rebound faster than all other areas of non-essential spend at the start of 2023, despite the cost of living squeeze.
This spend with agents slowed in June, though; while overall spend on travel increased by 9.9% last month, it grew by just 0.1% with agents (May – 9.9%). Total transactions with agents, meanwhile, grew by 3.4% in June (May – 19.9%).
Spending on holidays abroad outpaced demand for staycations in June as spend with airlines soared by 33.5%, significantly greater than the growth of spending on international and domestic hotels, resorts and accommodation (up 5.4%).
Overall, consumer card spending grew 5.4% year-on-year last month – less than the latest CPIH inflation rate of 7.9%, yet noticeably higher than in May (3.6%).
This comes as more than two thirds (67%) of shoppers report they are looking for ways to reduce the cost of their weekly shop, with almost a third (32%) shopping at multiple supermarkets to source a range of deals.
In a further sign that Brits are seeking out value-for-money wherever possible, discount stores were up 8.8%, seeing their largest growth since April 2021.
Barclays director Esme Harwood said: "June saw Brits get into the swing of summer, bringing a welcome boost to several sun-starved categories.
"Pubs and bars benefitted from Brits soaking up the sunshine in beer gardens, while butchers and garden centres saw a jump thanks to the arrival of the barbecue season.
"Even clothing retailers, which have struggled since the start of the cost-of-living crisis, returned to growth, as consumers took advantage of the heat to refresh their summer wardrobes."
