UK Consumer Spending Disappointed in November, Surveys Show

British consumers kept a tight rein on their spending in November as they awaited finance minister Rachel Reeves’ budget, while retailers said Black Friday sales disappointed, according to surveys on Tuesday.

Barclays said spending on its credit and debit cards fell by 1.1 percent in annual terms in November, the biggest drop since February 2021 when the Covid-19 pandemic still raged.

A separate survey from the British Retail Consortium (BRC) trade body showed spending at big retailers rose by 1.4 percent in annual terms last month, the slowest growth since May.

The surveys chimed with other indicators showing a weakening consumer economy. Official data showed retail sales fell sharply in October and the Confederation of British Industry said confidence among chains of stores hit a 17-year low last month.

“November was a month marked by uncertainty, as consumers were awaiting seasonal discounts and the details of the Autumn Budget,” said Karen Johnson, head of retail at Barclays.

Reeves announced £26 billion ($35 billion) of tax increases in her November 27 budget, although there was no increase to the main rates of income tax as had been expected for much of the month.

The BRC said computing and household appliance sales looked better than last year’s Black Friday promotion period, but non-food sales growth was minimal overall.

“Rising household costs and nervousness about the economy continue to impact discretionary buying,” said Linda Ellett, UK head of consumer, retail and leisure at accountants KPMG, who sponsor the BRC survey.

“But retailers will be hoping that budget clarity has now provided more certainty for consumers about their ability to spend in the months ahead,” she added.

The Barclays data covered card spending between October 25 and November 21, while the BRC survey spanned November 2 to November 29. Black Friday fell on November 28.

By Andy Bruce

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