Barclays: Card Spending Reached 15-month High in October

• Essential spending rose 3.1 per cent, as fuel spending climbed 22.7 per cent after diesel passed £2 a litre for the first time
  
  
• 42 per cent have used AI tools to help with spending and budgeting, up from 31 per cent a year ago – and 21 per cent of Gen Z plan to use AI to find Christmas gifts or deals
  
  
• Many are still making room for fun, with Entertainment spending up 13.9 per cent, its strongest growth since September 2024, as Glastonbury tickets returned to sale
  
  
• The Barclays Consumer Spend report combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending

Consumer card spending grew 2.3 per cent year-on-year in October – up from 2.0 per cent in September and the highest growth since July 2025, though still below the latest CPIH inflation rate of 3.6 per cent. Essential spending rose 3.1 per cent, up from 2.5 per cent, as fuel spending climbed 22.7 per cent after diesel passed £2 a litre for the first time. Non-essential spending grew 1.9 per cent, up slightly from 1.8 per cent, with Entertainment performing strongly. 

All five Barclays measures of consumer confidence dipped in October, in the run-up to the Chancellor’s Autumn Budget on Wednesday 28th October. Notably, confidence in the UK economy slipped to 23 per cent (from 26 per cent) while consumers’ confidence in their ability to spend on non-essentials dropped to 50 per cent (from 54 per cent) – however, both are broadly in line with October last year (22 per cent and 51 per cent). 

In research carried out following the Chancellor’s Budget, 27 per cent of UK adults say they are less confident in the UK economy as a result, compared with 11 per cent who feel more confident. However, consumers expect some Budget measures to offer support with living costs – two in five (42 per cent) think scrapping gas standing charges will help ease cost-of-living pressures, while 41 per cent say the same of the £100 Household Energy Payment. Over a third (36 per cent) would mainly use the payment for energy bills, and 11 per cent for other essentials such as food, rent or mortgage payments. 

Christmas on a budget – as AI lends a hand

Retail spending grew just 0.5 per cent in October, as shoppers made more purchases in some categories but spent less overall. Clothing transactions rose 5.2 per cent while spending fell 1.8 per cent, pointing to more frequent but lower-value purchases. Electronics followed a similar pattern, with transactions up 8.7 per cent while spending fell 1.5 per cent. 

Consumers’ focus on value is also reflected in Christmas plans, with 40 per cent saying they are cutting back now so they have more money for the festive period – rising to 53 per cent of Gen Z and 54 per cent of Millennials. Among those who celebrate Christmas, nearly six in 10 (58 per cent) expect celebrations to cost more than last year, and over a third (34 per cent) have already started buying presents.

As a result, two thirds of consumers (66 per cent) plan to take steps to manage the cost – most commonly using loyalty points or cashback (30 per cent). Notably, AI is also starting to play a part, with one in 10 (10 per cent) planning to use AI tools to find gift ideas or the best deals – rising to one in five (21 per cent) Gen Z. This comes as four in 10 (42 per cent) have now used AI tools such as ChatGPT to help with planning, spending or budgeting – up from 31 per cent in October 2025 and rising to seven in 10 (71 per cent) Gen Z. 

Despite growing adoption of AI, however, many say they would not yet let AI purchase products for them, with over a fifth (22 per cent) saying they would use AI to find or compare products but still buy directly themselves. 

Cutting back – but not on fun

Over half of UK adults (54 per cent) are trying to cut down on discretionary spending, yet Hospitality & Leisure spending still grew 3.5 per cent – the category’s second-strongest growth this year after February (3.6 per cent).

Entertainment led the way, up 13.9 per cent, its strongest growth since September 2024. Live music gave spending a lift, including Oasis ticket sales and the return of Glastonbury ticket sales after the festival’s 2026 fallow year. Bars, Pubs & Clubs also grew 4.7 per cent, its strongest growth since July. Consumers appear keen to continue making room for experiences, with 52 per cent planning a festive activity this winter, such as visiting a Christmas market or ice rink. One in three UK adults (31 per cent) plan to spend on competitive socialising, such as darts, crazy golf or bowling. 

Rohan Kumar, Head of Spend Insights at Barclays, said: “October’s growth was the strongest in over a year, but people are being careful with their money. Shoppers are hunting for value ahead of Christmas, making more clothing and electronics purchases but spending less overall. Even so, people are still making room for the things they enjoy, with gigs and nights at the pub giving entertainment its strongest growth in two years. AI is also quickly becoming part of how people plan their spending, though most still want the final say on what they buy.” 

Jack Meaning, Chief UK Economist at Barclays, said: “As the squeeze on consumers’ spending power begins to build, it is reassuring to see resilient numbers in October, albeit alongside signs that consumers are becoming more cautious and that the summer optimism over the economic outlook is starting to fade. While the Chancellor’s cost of living measures look set to provide welcome support for people at the margins, the survey mirrors our own assessment that, for many, they do not fundamentally change the outlook for the year ahead.”

Overall growth figures 

Source : Barclays UK

Image : William Barton / shutterstock / 1214614624

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY newsletter.