Q4: UK Consumer Spending outlook 2025
5 min read 10 November 2025
Will consumers loosen the purse strings this Christmas?
In our latest consumer spending outlook, we've revised our central forecast for 2025 consumer spending growth to 1.0% (down from our prior forecasts of 1.5% in Q1 and 1.2% in Q2).
Why? Even though wages have risen faster than costs across all income deciles and consumer segments, households have chosen to save rather than spend this discretionary income.
Will Christmas see consumers continue to rein in their spending, or loosen their belts? If they decide to part with their hard-won earnings, which categories stand to benefit?
Read the report to discover:
- How higher household bills and wage growth are impacting different consumer segments
- How the reduction in spending growth is hitting product categories
- Where consumers are likely to spend if they do loosen the purse strings this Christmas
- Which consumer segments make the most promising target markets this festive season
- Which regions are set to see the highest spending growth
- Which trends are shaping consumer spend in grocery, restaurants, fashion and consumer health as we head into 2026.
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