Christmas spending forecast to drop

November 10, 2015 - 2 minutes read

A new survey has found that families intend on spending less this Christmas, with many starting their festive shopping already.

Research carried out by VoucherCodes.co.uk found that households expect to spend around £796 this year, compared with the predicted spend of £820 in 2014.  The reduced spend is the lowest seen since Christmas 2012.

The survey from VoucherCodes.co.uk also found that households plan to spend around £159 on food and drink which is 8% less than they did last year.

The public are expected to spend an average of £41 on cards and decorations this year, a saving of 5% from 2014. The survey reveals just under £600 will be spent on gifts, 1% less than last year’s spend.

In the past few months negative inflation has took pressure of household finances. According to the Office for National Statistics (ONS), figures show that the Consumer Price Index rate of inflation fell from 0 in August to -0.1%. Reductions in the prices of food and petrol resulted in the cost of living going down.

71% of households will purchase Christmas gifts and food online this year, with 28% planning to use a mobile phone or tablet to search for festive purchases.

In 2014 26% of people saved for Christmas monthly. In 2015 43% of people surveyed have been saving monthly.

Claire Davenport, Managing Director of VoucherCodes.co.uk, said: “With Christmas fast approaching, it’s interesting to see that the nation is set to be a little savvier with their festive spending this year, with households across the UK planning to spend less on seasonal essentials.

“With technology at its most sophisticated yet, it’s easier than ever for people to shop around online and via their smartphone to get the best price and take advantage of discount shopping days.”

More than 2,000 people took part in the research in late September.

Here is how the amount that households expect to spend on Christmas this year compares with previous years, according to VoucherCodes.co.uk:

:: 2015, £796.05

:: 2014, £820.60

:: 2013, £822.03

:: 2012, £768.04