The monthly Nationwide Spending Report found money spent on flights “continues to significantly increase” compared with 2022, with total expenditure up by 33% year-on-year, to £79.2 million, during July 2023. The number of transactions also rose by a similar percentage (34%) for flights.
The report added that this surge in spending on flights was “likely due to more people travelling abroad for their summer holidays”.
Spending on holidays, which includes hotels, travel agents, package holidays and cruises, saw a more modest year-on-year growth of 6%, with total expenditure reaching £392.9 million last month.
Overall, Nationwide found that total consumer spending was up by 6% in July compared with the same month last year. But there was a rise in the number of people worried about their personal finances and their ability to pay for essentials – up from 57% in June to 62% in July.
Consumers have been hit by rises in essential costs over the past year, such as rent (up 27% year-on-year), mortgages (+16%), insurance (+13%) and credit card repayments (+13%).
Although there has been a reduction in what people are spending on fuel for vehicles (-20%) and car finance (-13%) compared to a year ago, while the amount being spent on utilities has also slowed from a 15% increase in June to just a 5% rise in July.
Mark Nalder, payments strategy and performance director at Nationwide, said: “Households are continuing to feel the pressure financially at a time of year when spending is traditionally higher due to the holiday season.
“Our data is showing that while the nation is able to keep plates spinning, the ongoing rise of essential and non-essential costs are starting to dampen the national mood, much like the UK summer. Whether this translates into a reining in of spending in the coming months is something we will continue to monitor."
