Consumer spending over the Christmas 2025 period in the UK is projected to reach £24.6bn ($32.9bn) – a 3.5% rise from 2024, according to a PwC survey.
With headline inflation running at 3.6% in October, the forecast suggests that, once price rises are taken into account, spending volumes are likely to remain broadly unchanged.
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PwC, as reported by Reuters, estimates that average expenditure per adult in the UK will increase to £461.
The survey indicates that the main areas of festive outlay will be food and drink, Christmas meals, and health and beauty products.
Among those intending to cut back, the primary reason cited was pressure from the cost-of-living squeeze.
The data comes against a backdrop of subdued trading in the run-up to the key festive period.
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By GlobalDataThe survey highlighted that consumers were cautious through November, holding back on purchases ahead of Chancellor Rachel Reeves’ budget.
Retailers across the UK also reported an underwhelming Black Friday period in 2025, as consumer caution weighed on spending.
Figures from Barclays showed that spending on its credit and debit cards declined by 1.1% year-on-year in November – the sharpest fall since February 2021, when Covid-19 restrictions were still affecting economic activity.
A separate survey from the British Retail Consortium (BRC) said that sales at major retailers grew just 1.4% in November 2025 compared with a year earlier, marking the slowest annual increase since May 2025.
Warmer-than-usual autumn and early winter weather was described as unhelpful for fashion retailers, who typically rely on seasonal demand for colder-weather clothing.
PwC UK head of retail Jacqueline Windsor stated: “Post-Budget, we should see clarity on personal finances easing some of the caution we have seen this autumn, which has contributed to a slow start to the critical Golden Quarter for some retailers.”
