Annual consumer card spending falls due to budgeting and weak confidence in economy

Consumer card spending grew 1.6% in 2024 and 4.1% in 2023.

The data revealed that essential spending on cards declined 2.3% in 2025, down from a 0.9% growth in 2024. Non-essential spending was up slightly by 0.8%.

The Barclays Consumer Spend report, which analysed hundreds of millions of customer transactions, also revealed the trends that shaped consumer behaviour during the year.

It found that consumers prioritised non-essentials and “feel good” purchases, with growth in this category outpacing essentials. Pharmacy, health and beauty grew 9.5%, and food and drink specialists saw a 2.7% boost.

Pharmacy, health and beauty was the strongest performing category, with 56 months of consistent growth. Those spending on this category spent an average of £324 each, up from £291 in 2024.

AI tools were leveraged, with 35% of consumers – and 70% of Gen Z – using them in 2025 for budgeting, planning and shopping. 

The entertainment category saw a 4.3% growth as music tours such as Oasis and movie releases such as Minecraft prompted consumers to spend an average of £316 on average on memorable moments.

Budgeting was significant in 2025, as 50% cut back on discretionary spending; 56% of of people cutting food costs used loyalty schemes, and 49% used discount supermarkets.

Spending on travel was up 2.7% year on year, but this was less than 2024’s rise of 6.9%.

Furniture stores grew 4.3% compared to a decline of 2.2% in 2024, seeing the strongest month in June, up 8.2%. 

Barclays head of retail Karen Johnson said: “While confidence in the UK economy has declined, UK households’ confidence in their ability to manage their money has remained strong, translating into the resilient performance of categories such as travel, entertainment and beauty. 

“It is encouraging to see that through purposeful spending, consumers continue to prioritise the things that bring them joy, unlocking the potential for UK economic growth.”