Spending at bars, pubs and clubs rose 2.7% along with a 2.9% transaction growth, while spending at restaurants, cafes and bakeries increased 1.5% despite a 1.3% decline in transactions. Takeaway and fast-food spending was up 1.6% with a 1.3% growth in transactions.
The figures come as overall UK card spending grew 2.1% year-on-year in August, its strongest rate of growth for 13 months. Both essential and non-essential spending increased by 2.1%.
Consumer confidence in household finances increased to 66% in August, up from 64% in July. Confidence in consumers’ ability to live within their means rose from 69% in July to 71% in August, while confidence in spending on non-essential items increased from 53% to 54%.
Spending on entertainment rose 5.9%, while travel spending increased 3.1% following five consecutive months of decline.
Rohan Kumar, head of spend insights at Barclays, said the rise in card spending showed continued momentum in consumer spending, alongside signs of a recovery in confidence.
Kumar adds: “Growth in discretionary purchases and strong performances across travel, eating and drinking, and entertainment all contributed to a boost for hospitality and leisure, suggesting many finished summer by prioritising holidays, social occasions and memorable experiences, even as price and value concerns stayed firmly front of mind.”
Jack Meaning, chief UK economist at Barclays, also described consumer spending as resilient in August, although he warned that economic risks remain.
Meaning said pressures from the Middle East were beginning to feed through into prices, but suggested households should be able to withstand the temporary inflationary pressure Barclays expects to emerge.
“If the situation in the Middle East persists or intensifies in the coming months, squeezed households may need to be even more discerning with their spending,” says Meaning.
The research was carried out between 21 and 25 August 2026 by Opinium Research on behalf of Barclays.