Consumer card spending declined -1.1% year-on-year in November – the greatest fall recorded since February 2021 (-9.5%), according to The Barclays Consumer Spend report. This is considerably lower than the latest CPIH inflation rate of 3.8%, as consumer confidence remains subdued.
Essential spend dropped -2.9%, marking seven consecutive months of decline, while non-essential spending fell (-0.3%) for the first time since July 2024.
Overall retail spending dipped -1.1% in November, however retailers enjoyed their busiest day of the year so far on Black Friday (28th), with transaction volumes up 62.5% 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% versus the year-to-date average, despite the sector’s overall slowdown of -1.1% in November.
A focus on wellness is influencing behaviour among younger consumers, claimed Barclays. Two in five (42%) 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%) have gone on fewer nights out in 2025, with spending at bars, pubs and clubs down -1.5% in November.
Looking ahead to the festive period, 38% expect that they’ll drink less than usual this Christmas, rising to 48 per cent for 18-34s. For those drinking less, 27% said they’re doing so to cut costs. Meanwhile two in five (37%) 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% in 2023.
Seven in 10 (70%) have noticed festive products, such as chocolate tubs and biscuit tins, being impacted by ‘shrinkflation’, while 57% 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%, followed by hard-to-cancel subscriptions (41 per cent), and drip pricing (38%), where companies add extra and hidden charges at the checkout. Over one in four (27%) chose dynamic or surge pricing, where prices increase based on demand, while two in five (39%) 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%, on par with October.
UK adults’ confidence in their household finances improved marginally from 63% to 64%, however this was below 2025’s 70% average, and lower than November 2024 (69%). Among those who are not confident in their household finances, over half pointed to the rising cost of living (52%), while 44% 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.”
