Barclays has issued a stark warning to its customers, revealing a significant downturn in debit and credit card expenditure as household confidence weakens across the United Kingdom.
Spending Slump and Black Friday Contrast
The bank's latest Consumer Spend report, which analyses hundreds of millions of transactions, found that card spending in November 2025 saw its most pronounced decline since 2021. This drop comes amid a broader climate of subdued consumer sentiment.
For the first time since July 2024, spending on non-essential items contracted. However, this trend was punctuated by a major retail event, as Black Friday provided retailers with their single busiest trading day of the entire year. One of the few areas to see growth was the streaming and subscriptions sector, which rose by 3.5%, buoyed by popular series like Stranger Things and Pluribus.
Pubs Feel the Pinch as Drinking Habits Shift
The hospitality sector continues to face challenges, with spending in pubs dipping by 1.5%. The research highlights a notable generational shift, driven by both economic and health-conscious factors.
Nearly half (48%) of 18–34-year-olds plan to drink less than usual this Christmas, compared to 38% of all UK adults. For those cutting back, 27% cite cost-saving as the primary reason.
A growing phenomenon, dubbed 'drinkflation', is also affecting perceptions. 37% of consumers have noticed alcoholic drinks becoming smaller or containing less alcohol for the same price or more, a sharp increase from 22% in 2023.
Economic Uncertainty Clouds 2026 Outlook
Barclays experts point to a cautious end to the year. Karen Johnson, Head of Retail at Barclays, commented: "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, offered a broader economic perspective: "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."
He concluded with a critical question for the year ahead: "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."
