Consumer card spending stalled in December
Consumer card spending growth remained flat in December, at 0.0 % year-on-year – significantly lower than the latest CPIH inflation rate of 3.5 %. Cutbacks in essential categories were offset by growth in discretionary spending, supported by another “Wicked” performance from entertainment (up 6.0 %) and holidaymakers booking trips for 2025, boosting travel 4.7 %.
Essential spend dropped by -3.0 % in December, as lower petrol prices again impacted fuel spending (-11.6 %) and Brits made cutbacks owing to the impact of inflation; nine in 10 adults said they were concerned about both rising food prices (86 %) and household bills (87 %).
This chimes with the slowdown in supermarket spending (-2.0 %), as two in three (64 %) say they are looking for ways to get more value from their weekly shop or reduce how much they spend.
Of those seeking savings, 55 % are looking out for loyalty scheme discounts and deals, 51 % are using vouchers or loyalty points to obtain money off their shopping, and half (50 %) are buying more discounted items.
Treats bring joy to cost-conscious consumers
Almost half (48 %) of Brits report planning to cut down on discretionary spending, however two in five (40 %) said they were treating themselves and their loved ones in December, despite the impact on their household finances.
The overall retail sector slipped -0.2 % in the month, however, in the wake of Black Friday and Cyber Monday, gift shopping and seasonal discounts spurred growth of 1.6 % at general retailers, following a -1.7 % decline in November. Pharmacy, health & beauty finished the year on a high, having performed strongly throughout all of 2024, benefitting from a 5.8 % uplift.
Growth in online shopping outpaced in-person sales, with online retail (excluding groceries) up 2.6 %, while face-to-face retail (excluding groceries) declined -1.2 %. One in five (17 %) shoppers reported buying online more frequently in the month, opting to purchase Christmas gifts from the comfort of their homes.
Home comforts
For house-proud Brits gearing up to start the New Year afresh, spending at garden centres (3.1 %) blossomed in December, as seasonal discounts encouraged investments in small “tweakments” and decorations for outdoor spaces, while Christmas tree purchases were also a likely contributory factor.
Furniture stores also saw an increase (1.7 %), the category’s highest level of growth since March 2022, as Brits shopped for gifts and home improvements ahead of Christmas.
Wicked continues to defy expectations, as cinema-goers cosy up for the small screen
Entertainment spending (6.0 %) continued its strong run, with pantomimes, ballets, and Christmas concerts drawing in audiences throughout December as Brits continued to prioritise memorable experiences that bring them joy. Box-office phenomenon Wicked continued to ‘defy’ expectations and coax film fans out of their houses to the silver screen, with cinemas proving ‘popular’, up 52.1 %.
The colder, stormy weather seen across the country in December helped TV hits Black Doves and The Day of the Jackal deliver strong growth for digital content & subscriptions (7.5 %). This comes as a fifth (18 %) of Brits reported using their subscriptions more than usual amidst an influx of new content.
Trimmed-down December impacts restaurants and pubs
Of those seeking savings, half (49 %) said they plan to cut back on eating out in restaurants, while 38 % said they were looking to reduce how much they spend on drinks in bars, pubs and clubs. This, combined with “quad-demic” illnesses taking hold, meant both categories saw modest growth in December, with restaurants, cafes & bakeries up just 1.1 %, while spending at pubs, bars & clubs grew just 1.3 %, down from 2.1 % and 3.5 % respectively in November.
New year, new habits
Looking ahead, 35 % of Brits plan to participate in ‘Dry January’ this year. Of this group, two fifths (40 %) are trying to be healthier, while one in five (22 %) want to reduce their spending on alcohol. Those taking part anticipate saving £57.70 each on average.
One in four (24 %) are planning to give ‘Veganuary’ a go in 2025, with health once again emerging as the top motivating factor, chosen by 34 % of those participating. A quarter (26 %) also say they’re trying to eat fewer processed foods.
Health and fitness is high on the agenda for those making New Years resolutions more broadly, chosen by 31 % of this group. Financial wellbeing is also a clear priority; over one in four (27 %) of those setting goals for 2025 want to save more each month, while 24 % plan to cut back on takeaways.
Exotic getaways for 2025
Fed up with the dreary UK weather, the travel sector continued its strong performance in December (4.7 %) as holidaymakers booked international trips to sunnier climes and made the most of the early arrival of fresh powder at ski resorts across Europe. Travel agents saw a 7.5 % increase, potentially helped by ‘Travel Tuesday’ deals in late November. With three quarters (74 %) of Brits stating they plan to travel in 2025, the early indications are that this momentum will continue well into the new year.
Karen Johnson, head of retail at Barclays, said: “Consumers demonstrated their ability to carefully manage their money once again in December, finding ways to save while still sprinkling in some cheer, setting aside funds to treats themselves and loved ones over the festive period.
“Brits are also planning to prioritise memorable moments in 2025, with travel emerging as a clear spending priority. Health is also held in high regard; those making New Year’s resolutions will cut back on pub trips, but spend on healthier alternatives to nights out.”
Jack Meaning, chief UK economist at Barclays, said: “As 2024 closed, consumers remained cautious, in line with muted confidence, elevated uncertainty and high rates of saving. In 2025, we expect household consumption to grow by less than 1 %, ahead of further interest rate cuts from the Bank of England over the course of the year.”
Overall growth figures
| Spend Growth | Transaction Growth | |
| Essential | -3.0% | -3.0% |
| Non Essential | 1.5% | 2.0% |
| OVERALL | 0.0% | 0.1% |
| Retail | -0.2% | -1.2% |
| Clothing | -0.7% | 0.2% |
| Grocery | -1.9% | -2.9% |
| · Supermarkets | -2.0% | -2.5% |
| · Food & Drink Specialist | -0.9% | -4.6% |
| Household | -0.3% | 5.0% |
| · Home Improvements & DIY | -3.1% | -3.9% |
| · Electronics | 0.8% | 14.5% |
| · Furniture Stores | 1.7% | 4.3% |
| · Garden Centres | 3.1% | 0.4% |
| General Retailers | 1.6% | 0.5% |
| · General Retailers & Catalogues | 2.5% | 0.5% |
| · Department Stores | -0.6% | 1.7% |
| · Discount Stores | 0.2% | -0.7% |
| Specialist Retailers | 1.8% | -1.5% |
| · Pharmacy, Health & Beauty | 5.8% | -0.5% |
| · Sports & Outdoor | -2.5% | -4.2% |
| · Other Specialist Retailers | 0.5% | -1.9% |
| Hospitality & Leisure | 3.5% | 2.8% |
| Digital Content & Subscription | 7.5% | 5.2% |
| Eating & Drinking | 1.1% | 0.7% |
| · Restaurants, Cafes & Bakeries | 1.1% | -1.1% |
| · Bars, Pubs & Clubs | 1.3% | -0.3% |
| · Takeaways and Fast Food | 0.9% | 3.6% |
| Entertainment | 6.0% | 13.2% |
| Hotels, Resorts & Accommodation | 3.6% | 1.0% |
| Travel | 4.7% | 3.4% |
| · Travel Agents | 7.5% | 17.8% |
| · Airlines | 3.6% | -0.8% |
| · Public Transport | -0.3% | -1.0% |
| · Other Travel | 6.2% | 12.7% |
| Other | -4.0% | -1.8% |
| Fuel | -11.6% | -6.5% |
| Motoring | -7.4% | 3.8% |
| Other Services | 2.4% | 0.6% |
| Insperiences | 3.3% | 4.0% |
| Online | 2.3% | 3.4% |
| Face-to-Face | -1.7% | -1.4% |
Notes to editors
Established in 2014, Barclays issues a monthly press release commenting on consumer spending trends.
Across its issuing and acquiring businesses, Barclays sees nearly 40% of the nation’s credit and debit card transactions, which provides us with unique insight into UK consumer spending. Unless stated otherwise, this press release is based on consumer card spending data from Barclays’ issuing business – i.e. Barclays debit card and Barclaycard credit card transactions. It relates to the period 16 November – 23 December 2023 vs 16 November – 23 December 2024.
Starting October 2024, Barclays will report the growth of consumer spending on ‘restaurants, cafes and bakeries’, which is a combination of two former categories: ‘restaurants’ and ‘other food and drink’. The new ‘Restaurants, cafes and bakeries’ category better represents overall consumer spending on dining out.
The Barclays Consumer Spend research in this press release was carried out between 13 and 18 December by Opinium Research on behalf of Barclays. There were 2,000 respondents in each round of research, providing a representative sample of UK consumers by age, gender, region, and income group.
