Britons are expected to spend £24.6 billion ($32.9 billion) during the 2025 Christmas period, marking a 3.5% increase compared with 2024, according to a survey by PwC published Friday. Despite a slow start to festive trading in November, retailers anticipate stronger consumer activity in the weeks leading up to Christmas.

With the UK’s headline inflation rate at 3.6% in October, PwC noted that this growth translates to roughly flat sales on a volume basis, as higher prices partially offset increased spending.

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Consumer Spending Patterns

The survey predicts that average spending per adult will reach £461, with the top priorities being:

• Food and drink, including Christmas dinner
• Health and beauty products
• Festive gifts and celebrations

Among consumers planning to spend less, the rising cost of living was cited as the primary reason for reduced expenditure.

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Slow Start to Holiday Shopping

Data released earlier in the week showed that British shoppers held back in November, awaiting Finance Minister Rachel Reeves’ budget announcement. Retailers also reported disappointing Black Friday sales, reflecting cautious consumer sentiment.

• Barclays reported a 1.1% drop in credit and debit card spending in November compared with last year, the largest decline since February 2021.
• The British Retail Consortium (BRC) found that sales at major retailers grew only 1.4% year-on-year, the slowest pace since May 2025.

Analysts have also noted that an unseasonably mild autumn and early winter suppressed demand for fashion items, particularly high-ticket goods like coats and boots.

“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,” said Jacqueline Windsor, head of retail at PwC UK.

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Outlook for the Holiday Season

Despite initial hesitancy, retailers remain optimistic that holiday shopping momentum will pick up in December, especially as consumers finalize gift purchases and festive preparations. PwC’s forecast contrasts with recent U.S. projections, where holiday spending is expected to see the steepest year-over-year decline since the pandemic, largely driven by Gen Z reducing expenditures amid economic uncertainty.

Analysts emphasize that the UK holiday economy remains resilient, with strong demand for essentials and festive goods likely to support overall growth in the retail sector.