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Half of Brits plan to cut spending this Christmas as consumer confidence hits new low

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As the festive season approaches, a new survey reveals that almost half of all Brits are intending to curb their holiday spending plans as the cost-of-living crisis bites and consumer confidence hits a low ebb.

Barclaycard’s latest consumer confidence survey has revealed that almost half (48%) of Brits are planning to cut down on Christmas purchases, including festive activities and gifts, to save money this year.

The survey of 2,001 people, which was carried out between 21 and 24 October also showed that six in 10 (59 per cent) will be spending less on gifts for family and friends; 44 per cent will cut back on festive food and drink, including traditional food and drink such as turkey and mulled wine; and 42 per cent will curb their spending on Christmas parties and socialising.

In addition, a fifth of Brits (21%) plan to set a spending limit with their friends and family for gift purchases and a similar proportion (19%) have started their Christmas shopping earlier this year to spread the cost.

One in 10 thrifty shoppers plan to buy more second-hand / pre-loved items to give as presents this year.

Consumer confidence hits a new low

The findings come against a backdrop of political and economic uncertainty. The survey also revealed that confidence in the UK economy had fell sharply to 15% – the lowest level recorded since 2015, when Barclaycard began tracking this data – and less than half the level this time last year (31%).

Meanwhile, 92% are worried about the negative impact of rising inflation on their personal finances, with 30% of Brits assessing whether every individual purchase is necessary and a fifth (19%) feeling that the cost-of-living squeeze is having a negative impact on their mental health.

Esme Harwood, Director at Barclaycard, said: “With the festive season around the corner, we’re likely to see further cutbacks, as Brits rein in their Christmas spending.

“Consumers are adopting a restrained approach to festivities, reaching for pre-loved gifts and setting spending limits to manage their costs during this traditionally expensive time of year.”

In more Christmas-related news, yesterday reported that parents would prefer cash gifts for their children over toys.

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