A YouGov SixthSense report into Christmas 2010 spending habits has found that people intend to spend less this year than last and will be more likely to shun big ticket purchases in the run up to the holidays.
When it comes to presents, the survey found that 36 percent of those asked said that they will spending between £100 and £249 on gifts for friends and family, while 30 percent intend to spend between £250 and £499.
The YouGov/ Bloomberg Household Economic Activity Tracker also found that consumers are currently unwilling to loosen the purse strings for big ticket items. When asked in October if they were in a better position to make major purchases than they were the month before, 37 percent said they were in a worse position with just 6 percent saying they were in a better position.
YouGov SixthSense research director James McCoy said: “Many companies have pre-empted consumer reluctance to indulge in major purchases; Sony’s promise to return VAT on products bought before Christmas Eve is one such example. With a VAT hike coming in January, manufacturers essentially feel that it is now or never – extra effort must be made to encourage customers to buy big before prices are affected.”