Christmas spending to fall for first time in half a decade

New research compiled by IHS Markit for Visa predicts a fall in UK consumer spending this festive period, the first decline since 2012. Reflecting a challenging economic environment, characterised by falling real wages, tepid economic growth and ongoing uncertainty, consumer spending during the crucial 2017 festive period is expected to be 0.1% lower in real terms when compared to the same period in 2016. This is in stark contrast to the 2.8% growth in spending recorded during the 2016 Christmas season.

The research anticipates a decline in spending on the high street, down -2.1% on the year during the November/December period. This is the third successive year that face-to-face spending has fallen and the biggest contraction recorded since 2012.

In contrast, e-commerce is forecasted to increase by 3.6% over this Christmas period, accounting for a record share of this year’s Christmas spending. Of every £5 spent during the November/December period, it is anticipated that almost £2 will be spent online.