Banks and the Economy9 Dec 2025 01:31
“HOUSEHOLD spending fell at its fastest pace since the pandemic last month, as families cut back amid growing fears over the economy.
Spending on credit and debit cards fell 1.1pc compared with November of last year, according to data from Barclays, the steepest annual drop since February 2021, when the country was still battling strict Covid restrictions.
The fall comes despite weeks of discount offers in the run-up to Christmas, particularly those relating to “Black Friday” late last month.
Data show that spending on groceries fell 2.8pc in November, indicating that households are watering down their weekly shop to combat higher food inflation, which recently hit 5pc.
As part of its latest monthly survey of consumer confidence, Barclays warned that perceptions of job security and faith in the economy had both fallen since the summer, which affected “non-essential spending” as a result. The British Retail Consortium also reported sales growth of just 1.4pc in November, the weakest annual rate since May. Separate figures from Indeed also found that UK job postings are down 20pc compared to pre-pandemic.
It comes after the Chancellor launched a £26bn tax raid during her Budget.“