LONDON, March 10 (Reuters) – British consumer spending grew slowly in February as households grew more pessimistic about the outlook for the economy with the Middle East conflict raising concerns about a fresh rise in inflation, surveys showed on Tuesday.
Barclays said consumer confidence in the strength of the UK, European and global economy all fell in February as the most recent conflict in the Middle East escalates.
A separate survey from the British Retail Consortium also painted a weak picture with sales growth among retailers dampened by wet weather last month.
Barclays said:
• Consumer spending grew by 1.1% in February in annual terms after a 0.8% increase in January.
• Around four in five consumers surveyed by Barclays were concerned that Middle East conflict will push up fuel prices, energy bills, and inflation.
• Over half were worried about potential disruption to travel.
• Nearly half of shoppers said they were taking action such as reducing energy usage, saving more, and delaying spending on major purchases in response to the war.
• Overall consumer card spending remained subdued in February, but spending on non-essential items hit a six month-high.
The BRC said:
• Spending at big retailers rose by 1.1% in annual terms in February, down from January’s 2.7%, and far below the 12-month average of 2.3%.
• Online non-food sales fell by 1.3% year-on-year in February, compared to 1.9% in February 2025.
• Helen Dickinson, BRC’s chief executive said retailers were hoping to boost sales in the spring, but the conflict in the Middle East “threatens knocking any recovery off course.
• The BRC survey spanned February 1 to February 28.
(Reporting by Suban Abdulla)
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