Consumer confidence has not recovered since Brexit vote, says Barclays

The data comes from a review by Barclays covering 10 years of its Consumer Spending Report, which draws data from spending on Barclaycard and the bank’s debit cards. 

It shows that consumer confidence stood at a 10-year peak in September 2016, in the aftermath of the referendum regarding Britain leaving the EU. Back then, 48% of consumers said they felt confident in the economy. 

The low point for consumer confidence was just 15% in October 2022, when Liz Truss’ mini-budget was followed by an immediate spike in borrowing costs. 

Despite what feels like a decade of political turmoil, the share of consumers who have confidence in their ability to spend on non-essential items has remained strong at an average of 53% since 2015. It stood at 56% in May 2025, showing resilience in the face of Donald Trump’s tariffs and increased government borrowing costs. 

“The last decade has brought unprecedented levels of disruption. Amid all the highs and lows – from rising bills, job insecurity and a fluctuating global and national economy. 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,” says Barclays head of retail Karen Johnson. 

Since 2020, hospitality and leisure has massively outpaced the retail sector in terms of annual spending growth. Two big growth drivers have been travel and entertainment, although a considerable portion of the rapid growth will be due to pandemic-era restrictions being lifted. 

The average monthly spend on entertainment has increased by 17.3% since January 2020, with notable spikes seen after Taylor Swift’s Era Tour sale in July 2023 and after Oasis tickets went on sale in September last year. 

Also gaining fast share of wallet have been digital subscriptions, spending on which has increased by nearly 50% since 2020. The average monthly spend per consumer on streaming platforms (altogether) like Netflix is now £50.60. 

The brightest spot for traditional retail is beauty, which has been one of the fastest-growing non-essential spending categories post-pandemic. 

“It’s often assumed that in uncertain times, practicality becomes more of a priority. Instead, it’s usually values and emotions that steer our choices. This ‘Seesaw Spending’ means functional purchases often take a back seat in favour of fun, joy, and the things and people that matter most to us, a trend set to continue for some time,” said William Higham, consumer futurist.