UK Card Spending Sees Sharpest Drop Since 2021

A new report published by Barclays yesterday, December 9, revealed that card spending has seen its greatest drop since 2021 in November of this year. The UK-centered bank’s research suggests that non-essential spending has fallen for the first time since July 2024, but Black Friday gave retailers their busiest day in 2025.

The report notes that consumer card spending has declined by 1.1% year-on-year in November, marking the greatest fall recorded since February 2021, when the drop was -9.5%. It is also considerably lower than the latest CPIH inflation rate of 3.8%. Barclays further said that essential spending has dropped by 2.9% amid ongoing consumer uncertainty, which also marks seven consecutive months of decline.

Meanwhile, non-essential spending went down -0.3% for the first time since July 2024. Overall, retail spending dipped -1.1% in November, but retailers still enjoyed their busiest day of the year on Black Friday, November 28.

Transaction volumes went up 62.5% in comparison to an average day in 2025, according to the report. Meanwhile, food and drink merchants benefited from the boost in high street football, with transactions going up 28.9% compared to the YTD average.

Moving on, the report noted that spending on digital content and subscriptions was also a bright spot, going up 3.5%, which was attributed to hit shows like Stranger Things and Pluribus.

Wellness Grows While Economic Confidence Lags Behind 2025 Average

On the other hand, wellness managed to sustain healthy growth, with pharmacy, health, and beauty spending going up 6.1% in November, and continuing a fairly strong streak. Around 45% of consumers said that they were focusing more on their wellbeing in 2025, with the most noticeable growth of 57% being among those aged 18-34.

The report noted that the focus on wellness is influencing behavior among younger customers, with around 42% of those aged 18-34 saying that they have been opting for more ‘low-and-no’ and functional drinks in recent months, while more than half have gone on fewer nights out in 2025.

With the festive period approaching, 38% expect they will drink less than usual around the holidays, with the percentage going up to 48% for 18-34s. The report further said that “shrinkflation” was listed as the top annoyance for shoppers, chosen by 44%, and followed by hard-to-cancel subscription (41%) and drip pricing (38%), where companies add hidden charges at the checkout.

Lastly, consumer and economic confidence were considerably lower in November, lagging behind the 2025 average. Barclays had noted that all seven measures had declined in October. The report noted that the confidence in the UK economy was on par with October, sitting at 22%, while confidence in household finances has seen an improvement from 63% to 64%, but it is still below the 2025 70% average.