Barclays’ internal debit and credit card data showed a 6.2% year-on-year decline in UK consumer spending for December, the largest drop since February 2021. Total transaction value fell to £18.4 billion, down from £19.6 billion in the same month last year, while transaction volumes slid by 3.8%. Spending on discretionary categories such as travel, restaurants and entertainment was particularly weak, with travel bookings down 12% and dining out dropping 9%. Barclaycard analysts attributed much of the pullback to rising utility bills and mortgage repayments, which together absorbed an estimated £1.5 billion more in household outgoings compared with December 2022.

Shares of Barclays fell 2.3% on Monday, erasing roughly £450 million of market value, after former U.S. President Trump publicly called for a 10% cap on credit card interest rates. The call was made during a Friday interview and put focus on Barclays’ Barclaycard division, which currently charges average annual percentage rates of around 18%. Investors flagged that a regulatory cap could compress net interest margins by as much as 120 basis points, potentially reducing annual profit before tax by more than £300 million. Barclays executives have said they are monitoring U.S. political developments closely but have not adjusted guidance for Barclaycard earnings to date.