Christmas spending is forecast to rise by less than 1% year on year due to concerns over Brexit, with consumer confidence at a 10-year low, according to a new report.
Research carried out by the Centre for Retail Research (CRR) predicted that seasonal spending will increase by just 0.8% even if the UK leaves the EU with deal, compared with a 1.2% increase last year and a 1.4% spike over Christmas 2017.
In the event of a no-deal Brexit spending will decline by 0.2% year on year, the VoucherCodes.co.uk Shopping for Christmas 2019 report forecast.
Consumer confidence is now at the lowest point in a decade, with the report identifying 2009 as the last time shoppers held such a bleak outlook.
Anita Naik, Lifestyle Editor at VoucherCodes.co.uk commented: “Whilst Christmas is always a busy period for shoppers, it looks as though concerns around Brexit have muted our excitement for this year.
“Our research suggests that it is fears over the economic impacts of Brexit, rather than any immediate price changes or product shortages themselves, that are set to hit spending the hardest. This would indicate that customers are looking for clarity and certainty around their financial situations before wanting to fork out on gifts and an expensive Christmas meal.”
Separate research by Deloitte found UK consumer confidence fell by one percentage point to -9% in the third quarter of the year.