UK consumer spending lost momentum in February, cooling after a strong start to the year, even as households reported record-high confidence in their personal finances, according to data from the British Retail Consortium (BRC) and Barclays.

The BRC reported that total retail sales grew just 1.1% year-on-year, a sharp slowdown from 2.6% in January, as unseasonably cold weather dampened demand for spring fashion. Like-for-like sales also softened, rising 0.9% in February compared to 2.5% in January.

Meanwhile, Barclays’ consumer spending data—which covers a broader range of purchases beyond retail—showed a similar trend, with annual growth slowing to 1.0% from 1.9%.

Despite this spending slowdown, Barclays found that consumer confidence in household finances surged to 75%—the highest level since the series began in 2015, reflecting improved savings and financial stability. However, broader economic confidence remains much lower at just 25%, suggesting ongoing caution about the UK’s economic outlook.