Consumer card spending grew 2.3% year-on-year in October, up from 2.0% in September and the highest growth since July 2025, according to the latest Barclays Consumer Spend report. The figure remains below the latest CPIH inflation rate of 3.6%.
Essential spending rose 3.1%, up from 2.5%, as fuel spending climbed 22.7% after diesel passed £2 a litre for the first time. Non-essential spending grew 1.9%, up slightly from 1.8%, with entertainment performing strongly.
For retailers, the picture was more muted. Retail spending grew just 0.5% in October, as shoppers made more purchases in some categories but spent less overall. Clothing transactions rose 5.2% while spending fell 1.8%, pointing to more frequent but lower-value purchases, and electronics followed a similar pattern, with transactions up 8.7% and spending down 1.5%.
Elsewhere, department store spending fell 3.7% and sports and outdoor spending declined by the same margin, while garden centres grew 6.1% and pharmacy, health and beauty rose 3.6%. Supermarket spending dipped 0.9%. Face-to-face spending grew 2.4%, slightly ahead of online at 2.1%.
Christmas plans reflect the same focus on value. Some 40% of consumers say they are cutting back now so they have more money for the festive period, rising to 53% of Gen Z and 54% of Millennials. Among those who celebrate Christmas, 58% expect celebrations to cost more than last year and 34% have already started buying presents. Two thirds (66%) plan to take steps to manage the cost, most commonly by using loyalty points or cashback (30%).
AI is also starting to play a part, with 10% planning to use AI tools to find gift ideas or the best deals, rising to 21% of Gen Z. In total, 42% of consumers have now used AI tools such as ChatGPT to help with planning, spending or budgeting, up from 31% in October 2025 and rising to 71% of Gen Z. Product research and comparison is the most common use, cited by 17% of adults, followed by finding discount codes and deals (11%). However, many are not yet ready to let AI buy on their behalf, an issue for retailers preparing for agentic commerce this peak, with 22% saying they would use AI to find or compare products but still buy directly themselves.
Rohan Kumar, Head of Spend Insights at Barclays, said:
Over half of UK adults (54%) are trying to cut down on discretionary spending, yet hospitality and leisure spending still grew 3.5%, the category’s second-strongest growth this year after February (3.6%). Entertainment rose 13.9%, its strongest growth since September 2024, helped by live music, including Oasis ticket sales and the return of Glastonbury ticket sales after the festival’s 2026 fallow year. Bars, pubs and clubs grew 4.7%, their strongest growth since July.
Consumers also appear keen to keep making room for experiences, with 52% planning a festive activity this winter, such as visiting a Christmas market or ice rink, and 31% planning to spend on competitive socialising such as darts, crazy golf or bowling.
All five Barclays measures of consumer confidence dipped in October in the run-up to the Chancellor’s Autumn Budget on 28 October. Confidence in the UK economy slipped to 23% from 26%, while confidence in the ability to spend on non-essentials dropped to 50% from 54%, although both are broadly in line with October last year (22% and 51%).
In research carried out after the Budget, 27% of UK adults say they are less confident in the UK economy as a result, compared with 11% who feel more confident. Two in five (42%) think scrapping gas standing charges will help ease cost-of-living pressures, while 41% say the same of the £100 Household Energy Payment.
Jack Meaning, Chief UK Economist at Barclays, said:
Barclays sees nearly 40% of the UK’s credit and debit card transactions across its issuing and acquiring businesses. The consumer research was carried out by Opinium among 2,000 UK adults between 23 and 27 October 2026, with the post-Budget survey of 2,000 adults conducted between 31 October and 3 November.
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