Consumer spending across the UK economy climbed to a 13-month high in August, driven by a rebound in the entertainment and travel industries, according to fresh data from Barclays. The Barclays report is closely watched as an early indicator of household demand, drawing on card transactions across a substantial share of UK consumer payments and complementing the official retail sales figures published later by the Office for National Statistics.

Overall card spending rose 2.1 per cent year-on-year, building on two per cent growth in July. Barclays' spending data showed both essential and non-essential spending up 2.1 per cent.

Fuel recorded the sharpest increase, with spending up 13.2 per cent — a continuation of the trend that followed the US-Iran war, when petrol prices surged amid disruption in the oil market. Brent crude, the international benchmark for oil prices, breached a four-year high of $126 per barrel earlier this year. Although prices have since eased, a barrel of crude remains above $97, well above the pre-war level of around $70. Sustained fuel costs feed through the wider economy, as transport and energy inputs affect prices for goods and services beyond the petrol pump.

Some categories of non-essential big-ticket spending declined, with home improvements down 0.9 per cent and department stores down 2.2 per cent. This was offset by a bounce back in entertainment, where spending grew 7.2 per cent. Barclays pointed to cinema successes such as The Odyssey and the new Spider-Man, as well as bowling alleys, as Brits sought air-conditioned venues during the heat wave.

Travel spending also rose 3.1 per cent as more holidaymakers opted for staycations over trips abroad.

"Consumer spending and confidence remained resilient in August, even as pressures from the Middle East conflict began to filter into prices," said Jack Meaning, chief UK economist at Barclays.

He said the latest spending data suggested consumers could "weather the bout" of incoming temporary inflation, but warned that "risk remains" if the conflict in the Middle East persists or intensifies, and "squeezed households may need to be even more discerning with their spend".

More broadly, Brits' confidence in their household finances edged up to 66 per cent in August from 64 per cent in July. However, confidence in the economy fell to 26 per cent from 30 per cent the month before, hit by external pressures from persistent inflation and commodity price risks as the Iran war took hold. The divergence — households feeling better about their own finances but worse about the wider economy — will be a key signal to watch in coming months, alongside inflation prints and the Bank of England's response as energy-driven price pressures feed through.