Brits cut back on spending pre-Budget but 26% gear for Black Friday splurge

Consumer card spending fell 0.8% year-on-year in October, a slight drop from -0.7% in September, with a combination of pre-Budget anticipation, upcoming Black Friday deals, and mild weather all cited.

That’s according to the latest data from Barclays, which covers nearly 40% of the UK’s credit and debit card transactions, with two in five consumers adjusting their finances ahead of the Autumn Budget and one in three holding off on major decisions until after the announcement on 26 November (Black Friday officially falls on 28 November this year).

In October, all seven measures of consumer and economic confidence tracked by Barclays declined for the first time since August 2022, when the Bank of England announced its biggest base rate increase in 27 years.

Retail recorded its steepest fall (-0.5%) since November 2024, with department stores (-7.8%) and discounters (-7.6%) both in decline. Sales of clothing were flat at 0.1%.

However, the health & beauty category maintained "strong" growth, up 7.6%, as 44% of consumers said they are “more focused on wellbeing this year,” rising to 55% among Gen Z consumers.

Shoppers are bracing themselves for Black Friday deals, with 26% saying they have been saving money to spend during the Black Friday/Christmas period.

Karen Johnson, Head of Retail at Barclays, said: "Looking ahead to the Autumn Budget, consumers are taking a considered approach to spending. While confidence declined in October, we’re seeing resilience within categories linked to health and wellbeing, suggesting people are still willing to invest in the areas that matter most to them.

"With Black Friday and Christmas on the horizon, we expect spending patterns to shift again as shoppers seek out value and seasonal offers."

New clothes and accessories emerged as the top non-essential cutback in October, chosen by 53% of those who say they are reducing their discretionary spending (48%).

Confidence in household finances fell significantly, from 74% to 63% in October. The proportion of those confident in their job security and ability to spend on non-essential items both reached their lowest points since 2023, at 44% and 51% respectively (down from 47% and 60% in September).

Those lacking confidence in household finances cited the cost of living (54%), a pessimistic outlook for the year ahead (41%), and inflation outpacing wage growth (30%) as their top causes for concern.

In contrast, those who do feel confident listed having little or no debt (58%), careful budget management (50%), and having a savings buffer (43%) as the main contributing factors. Baby boomers are the most likely generation to say they are confident in their household finances, at 71%.

Julien Lafargue, Chief Market Strategist, Barclays Private Bank and Wealth Management, commented: "Consumers and businesses alike appear to have adopted a ‘wait and see’ approach ahead of the Autumn Budget.

"While this is generating some short-term headwinds, it could position the UK economy for a rebound once the uncertainty lifts, potentially setting the stage for a strong festive season."

The Barclays Consumer Spend report combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending.

For this latest data, Barclays debit card and Barclaycard credit card transactions relate to the period from 28 September - 25 October 2024 versus 27 September - 24 October 2025.

The Barclays Consumer Spend research was carried out between 24 October – 28 October 2025 by Opinium Research on behalf of Barclays.

There were 2,000 respondents in each round of research, providing a representative sample of UK consumers by age, gender, region, and income group.