UK households cut spending at the sharpest rate in almost five years last month, with many delaying Christmas purchases amid financial uncertainty.Â
A leading survey from Barclays reported a 1.1% year-on-year fall in card spending in November, the steepest decline since February 2021, reinforcing concerns about weakening consumer confidence.
Black Friday provided some relief, remaining the busiest trading day of the year so far. Transaction volumes were 62.5% higher than the 2025 daily average, underlining the eventâs growing role in launching the festive shopping season. Even so, the British Retail Consortium said overall sales edged only modestly higher than last November, supported mainly by increased food spending.
Food sales rose 3%, though this remained below the 3.6% inflation rate. Non-food spending increased by a mere 0.1%, compared to a 12-month average of 1.6%. Homeware performed well as households prepared for festive gatherings, while fashion sales struggled amid unseasonably mild weather. Retailers and pub chains have also urged the Chancellor to reconsider business rates changes, warning of significant strain on medium-sized operators.
Barclays noted a slowing of pub spending, down 1.5%, alongside a shift in behaviour among younger adults, with many choosing alcohol-free drinks and activities. Its survey of 2,000 adults showed economic sentiment remained subdued, even as confidence in personal finances improved slightly.
With growth slowing, unemployment rising and high street pressures mounting, economists expect the Bank of England to cut interest rates from 4% to 3.75% later this month.Â
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