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UK customers’ debit and bank card spending slumped in 2025 for the primary time for the reason that Covid-19 pandemic as wider financial nerves knocked confidence.
Card spending fell 0.2 per cent within the final 12 months, in line with Barclays, a pointy distinction to the 1.6 per cent progress recorded in 2024.
Only a quarter of British adults stated they felt assured in regards to the state of the UK economic system final yr.
While confidence in family funds was a lot greater at 64 per cent, it nonetheless tumbled from 70 per cent in January.
“Individuals may be feeling a bit extra optimistic about their very own monetary conditions however they’re nervous in regards to the economic system usually, and social media is chock stuffed with posts about methods to spice up financial savings regardless of falling rates of interest,” stated AJ Bell head of economic evaluation Danni Hewson.
UK shopper confidence falls
Client confidence plunged to a brand new low forward of Chancellor Rachel Reeves’ second Autumn Finances as Brits ready themselves for a hefty tax raid.
The Barclays information additionally confirmed that important spending fell by 2.3 per cent, while non-essential expenditure grew by 0.8 per cent, with customers prioritising “joy-bringing” experiences over primary items.
There was additionally a major surge within the “Expertise Financial system,” with the leisure class rising by 4.3 per cent after the reunion of Oasis, which alone was projected to energy £1bn in financial exercise and main excursions by artists equivalent to Coldplay.
“Because the pandemic, priorities have modified. Wellness has develop into important, and each women and men take their skincare significantly,” Hewson stated.
“Moments that make reminiscences and might be shared with mates or bragged about on-line have had extra enchantment than ‘stuff’, though journey has taken a again seat to tickets for enormous music excursions.”
Boxing Day bounce may enhance spending
Barclays information confirmed Brits had been extra cautious in shopping for costly imports after President Donald Trump’s ‘Liberation Day’ onslaught in April, when the White Home slapped sweeping tariffs throughout buying and selling companions.
Over 70 per cent stated they might purchase extra British-made merchandise, with 12 per cent keen to pay a premium to assist native companies.
Retailers within the UK loved a lift in footfall on Boxing Day, with evaluation from MRI Software program displaying shopper footfall elevated 4.4 per cent year-on-year.
The analysts stated the retail sector might finish the yr on a “constructive word” after the Boxing Day bounce.
Hewson stated: “A late surge in revellers hitting the excessive avenue on Boxing Day may need boosted footfall, however the actual proof will likely be present in retailers’ Christmas earnings updates.”
