Christmas spending is expected to drop “dramatically” this year, according to new figures.
The Christmas Barometer 2016 from mobile lending firm Ferratum UK surveyed 13,261 consumers across 20 country locations in Europe and the Commonwealth.
It found that Brits are planning to spend 23 per cent of their disposal income on Christmas this year, down from the 39 per cent recorded in 2015.
The UK came ninth on the list of Christmas spending, with the highest spenders being Germany (31 per cent), Lithuania (30 per cent) and Estonia (29 per cent). The Netherlands is set to spend the least at 11 per cent.
British consumers are planning to prioritise buying new clothes (19 per cent) and toys and games (16 per cent) in their Christmas shopping.
Despite the drop in planned spending, Brits are the most likely to spend online this Christmas, with 41 per cent of all purchases in the UK to be made online. This is compared with an average of 25 per cent across the other countries.
Tony Gundersen, UK country manager for Ferratum Group, said: “This year’s Christmas Barometer result highlights that with all the uncertainty surrounding the UK economy many consumers intend to tighten their belts, which has resulted in a predicted down turn in average spending.
“This could be due to a few factors, including the ongoing ramifications of the UK’s vote for Brexit, which has already resulted in some prices increasing in store. However, the strong appetite for online shopping, combined with the intention to spend less this Christmas, may also be a sign of savvy shoppers in the UK seeking bargains online and taking advantage of high-profile online sales days such as Cyber Monday.”