UK Spending Slows in Feb: West Asia Tensions Fuel Inflation Fears, Dampen Confidence

• UK consumer spending grew modestly in February, with card spending up 1.1% year-on-year, slightly higher than January but still subdued.
• Households became more cautious due to concerns that escalating West Asia tensions could increase inflation and energy costs.
• Confidence in the UK, European, and global economies weakened, with four in five respondents worried about rising inflation.
• Consumers took precautionary steps like cutting energy use, saving money, and postponing major purchases, despite a six-month high in non-essential spending.
• British Retail Consortium data showed retail sales growth slowed to 1.1% in February, impacted by adverse weather and online non-food sales decline.