UK Consumer Spending Drops 1.7% in December, Largest Decline Since 2021
UK consumer spending fell 1.7% in December 2024 compared to the previous year, marking the largest decline since February 2021. Concerns over tax increases, inflation, and economic slowdown contributed to the cautious spending behavior.
Insights:
UK consumer spending experienced a notable contraction in December 2024, falling by 1.7% compared to the same month in 2023, according to data published by Barclays plc on January 13, 2026. This marks the largest annual decline since February 2021, during the height of the COVID-19 pandemic, reflecting heightened caution among households amid concerns over tax increases, inflation, and a slowing economy.
The holiday season, typically a robust period for retail activity, saw a divergence in consumer priorities. While food sales rose by 3.1%, largely due to price increases, non-food sales remained almost flat, with fewer Christmas gifts sold than anticipated. This trend was echoed by Sainsbury's plc , which reported weak non-food sales during the holiday period, highlighting consumers' focus on essential purchases over discretionary spending.
