New data from Barclays reveals that consumer card spending declined 0.2% YoY in 2025, after growing 1.6% in 2024 and 4.1% in 2023, and that furniture store spend saw its most sustained growth since 2020.
"In a year marked by careful and considered budgeting, confidence in household finances consistently exceeded confidence in the economy," states Barclays. "Some non-essential categories, such as beauty, travel and entertainment, bucked the general trends, as shoppers once again prioritised affordable treats and experiences that bring them joy."
The data reveals that 'essential' spending declined -2.3% in 2025, down from 0.9% growth in 2024, while 'non-essential' spending increased marginally, up 0.8%, yet still lagged behind the latest CPIH inflation rate of 3.8%.
Furniture store spend grew 4.3% overall, having declined -2.2% in 2024, as consumers invested in their living spaces, five years on from the pandemic, says Barclays: "Spending at furniture stores grew in each month of 2025, the most sustained growth for the category since 2020. This trend was partly driven by new homeowners and their desire for 'pick-me-up' purchases that enhance comfort at home.
"Furniture stores enjoyed a particularly strong month in June, up 8.2%, after a record number of mortgage completions took place in March 2025, ahead of April’s stamp duty changes. Similarly, garden centres, which fell -2.4% in 2024, saw strong growth of 4.6% YoY as buyers looked for ways to spruce up their outdoor areas."
The Barclays Consumer Spend report combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending.
Karen Johnson, head of retail at Barclays, says: “While confidence in the UK economy has declined, UK households’ confidence in their ability to manage their money has remained strong, translating into the resilient performance of categories such as travel, entertainment and beauty. 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.”
