Barclays’ internal debit and credit card transaction data shows that UK consumer spending declined by 3.4% in December compared with November, marking the steepest monthly fall for that month since January 2021. The bank’s analysis, covering more than 15 million active cards, indicates a particularly pronounced pullback in discretionary categories such as hospitality, which slid 5.2%, and non-essentials retail, down 4.1%. Barclays economists note this contraction adds to other indicators of household caution during the festive period, with total transaction volumes dipping below the five-year average for the first time since the start of the pandemic recovery.

In early London trading on Monday, Barclays shares declined by 2.1% following U.S. President Trump’s public appeal on Friday to cap credit card interest rates at 10%. Analysts at Barclays Private Bank estimate that such a cap could reduce the bank’s net interest income from card lending by up to £350 million annually, equivalent to roughly 3% of its 2023 card lending revenue. The stock’s setback reflects investor concern over potential regulatory constraints in one of Barclays’ most profitable consumer finance segments, where average APRs currently sit near 19%.