UK households cut back on spending at the fastest pace in almost five years last month as consumers put Christmas shopping on hold, according to a leading survey.
Adding to concerns that uncertainty surrounding the budget has helped dampen consumer confidence, Barclays said card spending fell 1.1% year on year in November – the largest fall since February 2021.
The bank said retailers still enjoyed their busiest day of the year so far on Black Friday, with transaction volumes 62.5% higher than the average day for 2025.
However, the British Retail Consortium and the consultancy KPMG found that the usual Black Friday lift was much less significant this year caused by shoppers having “jitters”.
Black Friday has become a key trading period for retailers, kicking off the Christmas shopping season and giving shops an early insight into their customers’ appetite for spending.
The BRC said sales were moderately ahead of those last November, propped up by higher food spending.
Food sales increased 3%, though this rise was below the average rate of inflation, at 3.6%.
Sales of other products increased by just 0.1% year on year – below the 12-month average of 1.6%, the BRC said.
Opposition parties have blamed Rachel Reeves for harming consumer confidence with months of speculation before the budget on 26 November.
The chancellor has since come under pressure to review changes to business rates, which medium-sized retailers and pub chains say will hit them especially hard.
Barclays said pub spending slowed by 1.5% in November, with 42% of those aged 18 to 34 opting for alcohol-free drinks and 40% for alcohol-free activities, according to its survey of 2,000 UK adults.
The study showed that confidence in the economy remained “subdued” in November, while the confidence consumers had in their own finances improved marginally.
A slowdown in economic growth, rising unemployment and the difficulties faced by high street retailers are expected to prompt the Bank of England to cut interest rates from 4% to 3.75% when its policy committee meets later this month.
Barclays said there was better news in November’s figures for travel agents, who enjoyed a Black Friday boost, up 10.7%. Streaming services and subscriptions increased 3.5% thanks to hit shows such as Stranger Things and Pluribus.
The BRC said homeware and upholstery sold well as households prepared to host friends and family over the festive season. Fashion sales lagged behind as the mild first half of November dampened demand for winterwear.
Jack Meaning, the 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.”
The chief executive of the BRC, Helen Dickinson, said: “Pre-budget jitters among shoppers meant the month of Black Friday did not deliver as strongly as retailers had hoped or the economy needed.
“Looking ahead to 2026, it is time public policy started prioritising measures to revive consumer confidence and keep costs of doing business down so retailers can focus on growth strategies to maximise their contribution to economic recovery.”
