Household spending falls 1.1%

Latest data from Barclays shows that consumer card spending declined -1.1 per cent year-on-year in November – the greatest fall recorded since February 2021 (-9.5 per cent), and considerably lower than the latest CPIH inflation rate of 3.8 per cent. Amid ongoing consumer uncertainty, essential spend dropped -2.9 per cent, marking seven consecutive months of decline, while non-essential spending fell (-0.3 per cent) for the first time since July 2024.

Overall retail spending dipped -1.1 per cent in November, however retailers enjoyed their busiest day of the year so far on Black Friday (28th), with transaction volumes up 62.5 per cent in comparison to the average day in 2025. Food and drink merchants also benefitted from the increase in high street football, with transactions up 28.9 per cent versus the year-to-date average, despite the sector’s overall slowdown of -1.1 per cent in November.

Spending on digital content and subscriptions was another bright spot, growing 3.5 per cent, thanks to hit shows such as Stranger Things and Pluribus.

Pharmacy, health and beauty spending grew 6.1 per cent in November, continuing its strong streak. This comes as 45 per cent of consumers say they have been focusing more on their wellbeing in 2025, rising to 57 per cent for those aged 18-34. Those spending on wellness (71 per cent) estimate they have spent £545 on average within the last year, with gym memberships (£162.50), weight loss drugs (£152.70) and fitness classes (£147.60) emerging as the greatest expenses.

This focus on wellness is influencing behaviour among younger consumers. Two in five (42 per cent) of those aged 18-34 say they have been opting for more ‘low-and-no’ and functional drinks in recent months, while over half (51 per cent) have gone on fewer nights out in 2025, with spending at bars, pubs  and clubs down -1.5 per cent in November. Similarly half (48 per cent) now prefer socialising in ways that support health and wellbeing, while two in five (41 per cent) have been combining social catch-ups with exercise, such meeting for a gym class, cycle or run.

Looking ahead to the festive period, 38 per cent expect that they’ll drink less than usual this Christmas, rising to 48 per cent for 18-34s. For those drinking less, 27 per cent said they’re doing so to cut costs. Meanwhile two in five (37 per cent) have noticed alcoholic drinks being impacted by ‘drinkflation’, where drinks become smaller or contain less alcohol, yet cost the same or more than they used to, up from 22 per cent in 2023.  

Seven in 10 (70 per cent) have noticed festive products, such as chocolate tubs and biscuit tins, being impacted by ‘shrinkflation’, while 57 per cent have noticed festive ‘skimpflation’ taking effect (where product or ingredient quality declines without a corresponding fall in price).

‘Shrinkflation’ was listed as shoppers’ top annoyance, chosen by 44 per cent, followed by hard-to-cancel subscriptions (41 per cent), and drip pricing (38 per cent), where companies add extra and hidden charges at the checkout. Over one in four (27 per cent) chose dynamic or surge pricing, where prices increase based on demand, while two in five (39 per cent) said they supported the Government’s plan to clamp down on this in the entertainment industry by banning the resale of event tickets for a profit.

Consumer and economic confidence were subdued in November, after all seven measures tracked by Barclays declined in October. Research conducted between 21st-25th November showed that confidence in the UK economy remained at 22 per cent, on par with October.

UK adults’ confidence in their household finances improved marginally from 63 per cent to 64 per cent, however this was below 2025’s 70 per cent average, and lower than November 2024 (69 per cent). Among those who are not confident in their household finances, over half pointed to the rising cost of living (52 per cent), while 44 per cent are worried about what the next 12 months will look like.

Karen Johnson, Head of Retail at Barclays, said “November was a month marked by uncertainty, as consumers were awaiting seasonal discounts and the details of the Autumn Budget. Retailers will have welcomed the Black Friday boost they received, which will hopefully set the tone in the run up to Christmas.”

Jack Meaning, Chief UK Economist at Barclays 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.”