Brexit fears threaten to put brakes on Christmas spending

Consumer spending in the UK is anticipated to increase by 0.8% this year – and only 0.2% in the event of a no-deal Brexit – according to the Shopping for Christmas 2019 report produced by the Centre for Retail Research for Vouchercodes.co.uk .

The study found that spend over Christmas –  the six weeks to the end of December – will increase from £79.72bn in 2018 to £80.27bn this year.

The 0.8% rise is lower than the 1.2% advance registered last year and a 1.4% increase in 2017, which the report suggested was because of ongoing concerns about the impact of Brexit.

The research showed consumer confidence in Belgium, France, Germany, Italy, the Netherlands, Spain and the UK is at a 10-year low.

Vouchercodes.co.uk lifestyle editor Anita Naik said: “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.

“However, even in the event of a no-deal Brexit, retailers can still expect to see a slight increase in sales this year, but businesses will be hoping for a delay or a form of soft Brexit if they are to cash in on the Christmas period as much as possible.”