Worryingly for retailers, consumers have actually cut back their budgets. The average planned spend has fallen from£609 in late October to£580 in the latest GfK NOP Christmas poll, conducted between November 7 and 12.
GfK retail research director Helen Roberts said that although the most recent 1.5 percentage point interest rate cut had been announced when the research was undertaken, it had still been unclear which mortgage lenders would cut their rates as a result and consumers had not been certain whether they would benefit.
She said: “It seems that the aim of boosting confidence has not been realised. Increasing awareness of job risks and the continued negative press about the economy appear to be the louder message for consumers.”
Other than gifts for close family members, more consumers intend to spend less than last year rather than spend more on other friends and family, decorations and food and drink.
Roberts warned: “The other worry is that we know that late shoppers spend less. We are fast reaching those last few weeks and we see little hope of a late spending surge.”
* GfK NOP’s Christmas spending research is updated fortnightly and available exclusively on retail-week.com. The next data will appear on Monday December 1
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