UK spending falls at fastest pace in almost five years as Christmas shopping delayed

(Sharecast News) - UK households cut back on spending at the fastest pace in almost five years in November, according Barclays, as consumers delayed Christmas shopping. Barclays said card spending fell 1.1% year-on-year, the sharpest decline since February 2021, adding to concerns that uncertainty around the budget had weighed on confidence. Retailers still saw their busiest day of the year on Black Friday, with transaction volumes 62.5% higher than the average day in 2025.

However, the British Retail Consortium and KPMG noted that the usual Black Friday lift was far less pronounced, with shoppers showing what they described as "jitters". The BRC said overall sales were moderately ahead of last November, supported by higher food spending, with food sales rising 3%, though this was below the 3.6% inflation rate, while sales of other products edged up just 0.1%, compared with a 12‑month average of 1.6%.

Barclays said pub spending slowed 1.5% last month, with younger consumers increasingly opting for alcohol‑free drinks and activities, while confidence in the wider economy remained "subdued," though sentiment around personal finances improved slightly.

There was brighter news for travel agents, who saw a 10.7% boost on Black Friday, while streaming services rose 3.5% on the back of hit shows such as Stranger Things and Pluribus.

Barclay's chief UK economist Jack Meaning said: "Even with a boost from Black Friday, consumer spending remained muted as we moved through the final quarter of the year. 2025 has been defined by this economic deceleration.

"The question remains as to whether easing interest rates and falling inflation can offset this trend and spur a rebound in consumer spending, or whether tightening fiscal policy and continued uncertainty will see the malaise continue in 2026."







Reporting by Iain Gilbert at Sharecast.com