UK consumer spending fell 0.2% in 2025, the first drop since 2020.
2025-12-30 15:35
UK consumers reined in their spending for the first time since 2020, amid growing concerns about rising living costs. According to Barclays data debit and credit card spending fell, even as households still found ways to treat themselves to small indulgences and memorable moments. That is the first year-over-year decline since 2020 — a period in which spending fell 7.1% as the pandemic shut down businesses and prevented far-flung families from gathering for traditional celebrations. Economists said the dip was a sign that households were beginning to feel pressure from inflation, stagnant wage growth, and broader economic uncertainty. Official figures released last week reinforced the picture. Disposable incomes adjusted for inflation fell 0.8% in the third quarter, marking the longest stretch without any income growth since late 2014. Weak spending and high savings rates are a “ball and chain” for the British economy , which is highly dependent on some...
