Three in five households are now worried about their finances, a new study from Nationwide Building Society shows.
But despite this, spending on non-essentials was up 6 per cent in July compared to a year ago – and the top category for growth was airline travel.
With spend up 33 per cent on flights compared to July 2022, it was top of the pile for both non-essential and essential categories, according to analysis of customer spend by Britain’s biggest building society.
That’s despite money worries rising for the first time since spring as households continue to grapple with rising bills.
Adventure awaits: Nationwide spending data shows that households are forking out far more cash on flights this summer than in 2022
Also in the non-essentials category, spend on digital goods which including console games and app purchases was up 26 per cent and leisure and recreation, such as sporting events and gym use, was up 11 per cent.
Spending on essentials was also up compared to July 2022 – but at a slightly smaller 4 per cent.
Top of the pile was rental payments, up 27 per cent compared to last July, followed by mortgage payments – up 16 per cent.
The biggest faller overall was spend on petrol and electric car charging, down 20 per cent in July.
This was thanks to lower pump prices than the year before – although, this is likely to be short-lived, with fuel prices rocketing for motorists in August.
Mark Nalder, of Nationwide Building Society, said: ‘Households are continuing to feel the pressure financially at a time of year when spending is traditionally higher due to the holiday season.
‘Our data is showing that while the nation is able to keep plates spinning, the ongoing rise of essential and non-essential costs are starting to dampen the national mood, much like the UK summer.
‘Whether this translates into a reining in of spending in the coming months is something we will continue to monitor.
‘Significant increases in rent costs, mortgages, insurances and credit card repayments mean households are more focused on ensuring they have enough to pay the bills that matter most.
‘And with fuel and energy costs down, this is providing a bit of relief at a time of year many will be driving on their holidays and enjoying themselves.’
