UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
Card spending falls to lowest annual level since 2021 and retail growth slows despite Black Friday
UK consumers significantly eased back on spending in November, according to new surveys that reveal a drop in card purchases and a sluggish retail sales growth.
Card spending across credit and debit cards slipped by 1.1 percent year-on-year — the sharpest fall since February 2021 — suggesting households are holding off on non-essential purchases.
Meanwhile, retail sales across major chains rose just 1.4 percent, marking the weakest monthly growth since May. The subdued spending behaviour comes amid pervasive uncertainty surrounding the government’s recent budget measures, higher living costs and lingering inflationary pressures.
Many households reportedly delayed purchases — including typical Black Friday and seasonal buying — as they waited for clearer fiscal and economic signals.
Sales of essentials such as groceries remained mildly positive, but non-food and discretionary categories saw minimal growth.
The decline in consumer activity has further strained confidence among retailers.
A separate survey found sentiment in the retail sector plunged to its lowest in 17 years, with many businesses delaying investment and hiring as demand softens.
The contraction in spending spans several consumer categories, including hospitality, retail clothing, and leisure services, underscoring the breadth of the slowdown.
Even so, some sectors posted modest resilience: pharmacies, health-care related purchases and certain household-appliance sales held up comparatively better than hospitality or non-essential retail, hinting that spending is prioritising necessities.
Analysts and business groups say the window following the budget could be crucial — clear government policies and visible inflation relief may help restore confidence, but for now consumers appear focused on tightening budgets and saving where possible.
With the festive season ahead and more economic data on the horizon, the trajectory of UK consumer spending — a major component of overall growth — remains in doubt, leaving retailers and policymakers watching closely for signs of stabilization or further weakness.
Card spending across credit and debit cards slipped by 1.1 percent year-on-year — the sharpest fall since February 2021 — suggesting households are holding off on non-essential purchases.
Meanwhile, retail sales across major chains rose just 1.4 percent, marking the weakest monthly growth since May. The subdued spending behaviour comes amid pervasive uncertainty surrounding the government’s recent budget measures, higher living costs and lingering inflationary pressures.
Many households reportedly delayed purchases — including typical Black Friday and seasonal buying — as they waited for clearer fiscal and economic signals.
Sales of essentials such as groceries remained mildly positive, but non-food and discretionary categories saw minimal growth.
The decline in consumer activity has further strained confidence among retailers.
A separate survey found sentiment in the retail sector plunged to its lowest in 17 years, with many businesses delaying investment and hiring as demand softens.
The contraction in spending spans several consumer categories, including hospitality, retail clothing, and leisure services, underscoring the breadth of the slowdown.
Even so, some sectors posted modest resilience: pharmacies, health-care related purchases and certain household-appliance sales held up comparatively better than hospitality or non-essential retail, hinting that spending is prioritising necessities.
Analysts and business groups say the window following the budget could be crucial — clear government policies and visible inflation relief may help restore confidence, but for now consumers appear focused on tightening budgets and saving where possible.
With the festive season ahead and more economic data on the horizon, the trajectory of UK consumer spending — a major component of overall growth — remains in doubt, leaving retailers and policymakers watching closely for signs of stabilization or further weakness.
