Britons are set to spend 24.6 billion pounds ($32.9 billion) on presents and celebrations over the Christmas period this year, a 3.5% increase on 2024, despite a slow start to festive trading, according to a survey from PwC published on Friday.
With Britain’s headline inflation rate running at 3.6% in October, PwC’s forecast would indicate flat sales on a volume basis.
PwC said average spending per UK adult is forecast to rise to 461 pounds, with the top priorities being food and drink, Christmas dinner, and health and beauty products.
Of those consumers who said they are planning to spend less, the cost of living was cited as the main reason.
UK CONSUMERS RELUCTANT TO SPEND IN NOVEMBER
Survey data published on Tuesday showed British consumers kept a tight rein on their spending in November as they awaited finance minister Rachel Reeves’ budget, while retailers said Black Friday sales disappointed.
Barclays said spending on its credit and debit cards fell by 1.1% in annual terms in November, the biggest drop since February 2021 when the COVID-19 pandemic still raged.
A separate survey from the British Retail Consortium (BRC) trade body showed spending at big retailers rose by 1.4% in annual terms last month, the slowest growth since May.
Analysts have also highlighted that a very mild autumn and early winter has been unhelpful for fashion retailers, particularly for sales of high-ticket items such as 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,” Jacqueline Windsor, head of retail at PwC UK, said.
Last month, PwC forecast the steepest year-over-year drop in U.S. holiday spending since the pandemic, primarily fuelled by Gen Z shoppers pulling back amid economic uncertainty.
($1 = 0.7485 pounds)
(Reporting by James Davey）
