Two key reports into retailing consumer spending on Tuesday painted an ongoing sluggish picture with consumers somewhat nervous about spending ahead of the Autumn Budget and many hanging on until big discounts arrive later this month.

First the regular monthly Barclays report that covers general consumer spending rather than just retail.

It said October data shows that consumers are cutting back ahead of the Budget, with essential spend down for the sixth consecutive month and confidence in both personal finances and the wider economy continuing to soften. Two in five consumers were adjusting their finances ahead of the Budget, with one in three holding off on major decisions.

In fact, all seven measures of consumer and economic confidence tracked by Barclays fell for the first time since August 2022.

Overall consumer card spending fell 0.8% year-on-year in October, a slight drop from September’s -0.7%, and it showed spending is considerably lower than the latest CPIH inflation rate of 4.1%. 

Looking specifically at retail spend, it recorded its steepest fall (-0.5%) since November 2024, with department stores (-7.8%) and discounters (-7.6%) both in decline. Clothing spend was up but only just, at +0.1%, which means it was essentially flat.

The mild weather led shoppers to delay seasonal purchases, while 26% said they’ve been saving money to spend during the Black Friday/Christmas sales period. New clothes and accessories emerged as the top non-essential cutback in October, chosen by 53% of the 48% who say they’re reducing their discretionary spending.

Despite the overall slowdown, the healthy & beauty category maintained strong growth, up 7.6%. This comes as 44% of consumers say they’re more focused on wellbeing this year, rising to 55% among Gen Z.

Consumer confidence — either in relation to the wider economy or consumers’ personal situations — was low, which offers some explanation for the anaemic figures.

Meanwhile the British Retail Consortium-KPMG also released their monthly report on Tuesday with it saying October was “a subdued month, with the weakest growth since May”.

UK total retail sales increased by 1.6%, below the 12-month average growth of 2.1%. Non-food sales increased by just 0.1%, also below the 12-month average growth of 1%. In-store non-food sales increased by 0.1%, while online they were flat.

CEO Helen Dickinson highlighted how “many delayed spending, waiting for Black Friday deals and cooler temperatures before buying toys, electronics and clothing”.