Card spend growth reached 15-month high in October

Latest data from Barclays has found that consumer card spending grew 2.3% year-on-year in October – up from 2.0% in September and the highest growth since July 2025, though still below the latest CPIH inflation rate of 3.6%. Essential spending rose 3.1%, up from 2.5 %, as fuel spending climbed 22.7% after diesel passed £2 a litre for the first time. Non-essential spending grew 1.9%, up slightly from 1.8%, with Entertainment performing strongly.

All five Barclays measures of consumer confidence dipped in October, in the run-up to the Chancellor’s Autumn Budget on Wednesday 28th October. Notably, confidence in the UK economy slipped to 23% (from 26 %) while consumers’ confidence in their ability to spend on non-essentials dropped to 50% (from 54%) – however, both are broadly in line with October last year (22% and 51%).

In research carried out following the chancellor’s Budget, 27% of UK adults say they are less confident in the UK economy as a result, compared with 11% who feel more confident. However, consumers expect some Budget measures to offer support with living costs – two in five (42%) think scrapping gas standing charges will help ease cost-of-living pressures, while 41 % say the same of the £100 Household Energy Payment. Over a third (36%) would mainly use the payment for energy bills, and 11% for other essentials such as food, rent or mortgage payments.

Retail spending grew just 0.5% in October, as shoppers made more purchases in some categories but spent less overall. Clothing transactions rose 5.2% while spending fell 1.8%, pointing to more frequent but lower-value purchases. Electronics followed a similar pattern, with transactions up 8.7% while spending fell 1.5%.

Consumers’ focus on value is also reflected in Christmas plans, with 40% saying they are cutting back now so they have more money for the festive period rising to 53% of Gen Z and 54% of Millennials. Among those who celebrate Christmas, nearly six in ten (58%) expect celebrations to cost more than last year, and over a third (34%) have already started buying presents.

As a result, two thirds of consumers (66%) plan to take steps to manage the cost – most commonly using loyalty points or cashback (30%). Notably, AI is also starting to play a part, with one in ten (10%) planning to use AI tools to find gift ideas or the best deals – rising to one in five (21%) Gen Z. This comes as four in ten (42%) have now used AI tools such as ChatGPT to help with planning, spending or budgeting – up from 31% in October 2025 and rising to seven in ten (71%) Gen Z.

Despite growing adoption of AI, however, many say they would not yet let AI purchase products for them, with over a fifth (22%) saying they would use AI to find or compare products but still buy directly themselves.

Over half of adults (54%) are trying to cut down on discretionary spending, yet Hospitality & Leisure spending still grew 3.5% – the category’s second-strongest growth this year after February (3.6%).

Entertainment led the way, up 13.9%, its strongest growth since September 2024. Live music gave spending a lift, including Oasis ticket sales and the return of Glastonbury ticket sales after the festival’s 2026 fallow year. Bars, Pubs & Clubs also grew 4.7%, its strongest growth since July. Consumers appear keen to continue making room for experiences, with 52% planning a festive activity this winter, such as visiting a Christmas market or ice rink. One in three UK adults (31%) plan to spend on competitive socialising, such as darts, crazy golf or bowling.

Rohan Kumar, Head of Spend Insights at Barclays, said “October’s growth was the strongest in over a year, but people are being careful with their money. Shoppers are hunting for value ahead of Christmas, making more clothing and electronics purchases but spending less overall. Even so, people are still making room for the things they enjoy, with gigs and nights at the pub giving entertainment its strongest growth in two years. AI is also quickly becoming part of how people plan their spending, though most still want the final say on what they buy.”

Jack Meaning, Chief UK economist at Barclays, said “As the squeeze on consumers’ spending power begins to build, it is reassuring to see resilient numbers in October, albeit alongside signs that consumers are becoming more cautious and that the summer optimism over the economic outlook is starting to fade. While the Chancellor’s cost of living measures look set to provide welcome support for people at the margins, the survey mirrors our own assessment that, for many, they do not fundamentally change the outlook for the year ahead.”

 

Barclays consumer confidence measures
	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct
Household finances	66%	67%	65%	64%	65%	64%	64%	66%	67%	64%
Job security	43%	44%	44%	43%	43%	46%	47%	44%	45%	44%
Ability to spend on non-essentials	54%	55%	53%	49%	52%	51%	53%	54%	54%	50%
Ability to live within means	71%	74%	71%	69%	70%	70%	69%	71%	73%	68%
Strength of the UK economy	24%	25%	21%	22%	25%	24%	30%	26%	26%	23%

Use of AI tools for planning, spending and budgeting
	All adults	Gen Z
Used AI for planning, spending or budgeting	42%	71%
Product research/comparison	17%	22%
Finding discount codes and deals	11%	17%
Finding gift inspiration within a budget	8%	16%
Comparing Christmas gift prices across retailers	7%	11%