Growth in spend with agents slows significantly in June despite lates surge

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%).