UK Households Predicted to Cut Christmas Spending

An estimated almost half of UK households are expected to lessen their holiday spending due to the skyrocketing cost of living and sales are sharply decreasing.

Payments processor, Barclaycard has mentioned that 48% of people surveyed during October 21-24 are planning to shell out less money this holiday season. In the survey, 59% of respondents say they plan on purchasing less generous gifts, and another 42% lessening their socializing.

The British Retail Consortium has stated that back in October, spending at big stores was 1.6% higher compared to 2021, which was a decrease from September’s 2.2% and showed a fall in the volume of purchases once inflation was factored in.

“Christmas will come later than last year for many and there may be more gloom than glitter as families focus on making ends meet, particularly as mortgage payments rise,” mentioned Helen Dickinson, BRC’s Chief Executive.

The British consumer price inflation reached a 40-year high of 10.1% back in September. The Bank of England predicted that this would peak in the current quarter at an estimated 11%.

The BoE increased interest rates to 3%, which is the highest since 2008. They likewise mentioned that the UK had the likelihood of two years of recession, which is longer than any past recessions in the last century.

“The small rise in sales masked a much larger drop in volumes once inflation is accounted for,” t mentioned the BRC.

“Consumers continue to swap big nights out for cozy evenings in as they reduce their discretionary spending,”  mentioned Esme Harwood, Barclaycard Director.

Source: Inquirer