New Delhi

Households in the United Kingdom are hesitant to spend much on big-ticket purchases in the run-up to Christmas. This is according to a study which cited a broadly weak UK economic outlook as the reason.

Advertisment

Research group GFK's mood barometer did rise, but it ended barely above 2024's average. Consumers were somewhat more upbeat about their own financial situations.

However, they remained pessimistic about the economy as a whole and were unwilling to make any large Christmas purchases.

Neil Bellamy, consumer insights director at GFK, said, and I quote, "In December, consumers adopted the holding pattern we've seen for much of 2024."

Advertisment

Bellamy added, "It's the continuing uncharitable view on the UK's general economic situation that's suppressing consumer confidence."

The data will be an additional setback for businesses.

Retailers and hospitality venues are already preparing for tough trade during their most important time of the year.

Advertisment

Consumers escaped a significant portion of the 40 billion pounds or 50.8 billion dollars in tax increases proposed by Chancellor Rachel Reeves in her budget on October 30.

However, their mood is being dampened by a deteriorating jobs market, increased energy prices, and rising mortgage payments.

(With inputs from the agencies)