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UK houses Have a cut on Christmas Expenditure That’s at the fastest rate in nearly five years, new data shows.
data from barclays he shows the card Expenditure The number of people declined by 1.1 percent in November compared to the same period last year. deal with financial uncertainty on what was to come in BudgetThis is the biggest decline immediately after the Covid pandemic in February 2021,
Furthermore, despite the decline, inflation remains high and household bills are placing cost pressure on households throughout the year.
The combination of those concerns and economic unknowns has prompted Britons to rein in their Expenditure Before Christmas – although it appears they still loosened the purse strings on a major weekend.
Despite decline in spending for the month, the bank confirmed retailers It is typically their busiest day of the year, with spending nearly two-thirds higher (62 percent) than the average day of the year.
Perhaps indicative of where retail growth can be found, TikTok Shop announced that its UK sales on Black Friday were the highest ever, with 27 products sold per second and the number of shoppers using the site increased by more than a quarter (28 percent) compared to 2024.
While it is expected that physical stores will still be ahead of online sales across the board, discount website Vouchercode data revealed that Britons were likely to spend more than £3.7m every minute on Cyber Monday.
But for many companies, online or otherwise, the real concern will be whether November spending has been pushed to the point of year-end pre-Christmas status, or whether the country’s economic conditions are good enough for consumers to collectively spend less overall.
“Latest card spending figures barclays Show that consumers are fed up with all the pre-Budget There is speculation that the taxes they pay could increase or their employers could be denied loans again,” said Danny Hewson, head of financial analysis at AJ Bell.
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“Concerns about the economy, particularly the labor market, have made people cautious, and many are highly aware that saving rather than splurging may be the best move this Christmas. But people also can’t resist a bargain, especially if they’ve had their eye on a particular item for a while, so it’s not surprising that the tills buzzed on Black Friday.
“The past few years have made houses Incredibly sensible about your spending. They know ‘contraction inflation‘When they see this and that pub prices are also rising it is no surprise that many people are planning to drink less this Christmas.
“One trend that isn’t going away is people’s desire to feel healthier – either by reducing how much alcohol they drink or by spending money on things like vitamins and beauty treatments – and this is likely to continue into the new year as resolutions give people extra incentive.”
Jack Meaning, UK Chief Economist barclaysSaid: “Despite the boost from Black Friday, consumer spending remained subdued as we head into the final quarter of the year. This year has been defined by this economic downturn.
“The question remains whether lower interest rates and a decline in inflation can balance this trend and lead to a rebound in consumer spending, or whether fiscal policy tightening and continued uncertainty will continue the malaise into 2026.”