Barclays reported that UK consumer spending decreased by 8.7% in December compared with the same month a year earlier, marking the largest annual drop since January 2021. The bank’s analysis, based on over 24 million active debit and credit cards, revealed particularly steep declines in retail and hospitality transactions, which fell by 12.3% and 10.1% respectively. Overall transaction volumes declined by 5.2%, suggesting that households were exercising heightened caution ahead of the holiday season. Barclaycard customers also shifted more spending toward essential categories, with grocery spending down just 2.4% year-on-year and utility payments rising by 3.8%. These trends underline challenges for Barclays as consumer lending volumes and fee income from interchange revenue face downward pressure in the coming quarters.

Shares of Barclays fell 4.6% in early trading on Monday following U.S. President Trump’s statement advocating for a cap on credit card interest rates at 10%. Although the proposal targets U.S. issuers, investor concern extended to global banks with significant credit card businesses, including Barclays. The bank’s card portfolio comprises approximately £45 billion of outstanding balances, with an average interest rate of 18.9%. Analysts at Kepler Cheuvreux estimated that a 10% cap in the U.S. market could reduce Barclays’ annual net interest income by up to £200 million, assuming similar rate structures were enforced across jurisdictions. Barclays management has not indicated any immediate strategic response, but the stock’s reaction highlights sensitivity to regulatory shifts that could affect its consumer finance division.