UK consumer spending slows in February as inflation fears dim sentiment, survey shows

Consumer Spending Trends - British consumer spending grew by 1.1% in February on an annual basis, following a 0.8% increase in January [1] - Spending at large retailers rose by 1.1% year-on-year in February, a decrease from January's 2.7% and below the 12-month average of 2.3% [1] - Online non-food sales experienced a decline of 1.3% year-on-year in February, compared to a 1.9% decline in February 2025 [1] Consumer Sentiment and Concerns - Consumer confidence regarding the UK, European, and global economy fell in February due to escalating conflicts in the Middle East [1] - Approximately 80% of consumers surveyed expressed concerns that the Middle East conflict would lead to increased fuel prices, energy bills, and inflation [1] - Over half of the surveyed consumers were worried about potential travel disruptions due to the conflict [1] Spending Behavior Adjustments - Nearly half of shoppers reported taking actions such as reducing energy usage, saving more, and delaying major purchases in response to the ongoing war [1] - Despite subdued overall consumer card spending in February, spending on non-essential items reached a six-month high [1] Retail Outlook - The British Retail Consortium (BRC) indicated that retailers are hopeful for a sales boost in the spring, although the Middle East conflict poses a risk to recovery [1] - The BRC survey covered the period from February 1 to February 28 [1]