Britons are forecasted to spend more in restaurants and physical retail stores this Christmas, with a predicted increase of 3.7% compared to last year.
It is also predicted that there will be a 12.9% increase on spending in restaurants, as people come together to celebrate with friends and family during the festive period between 1st November and 24th December.
Spending on clothes and jewellery is also predicted tol increase as people dress to impress for the festive period. Analysis of areas of anticipated spending surges show that fashion and accessories-related sectors are both expected to grow this year, by 5.3% and 5.1% respectively when compared to the same period last year.
Spending on essentials, such as groceries, is expected to increase by 4.3% year on year, primarily driven by inflation, but also by the desire from shoppers to consume festive foods and host social gatherings. When it comes to gifting, electronic sales are anticipated to be favoured this year, with sales predicted to grow by 5.6% year on year.
Natalia Lechmanova, senior economist, Europe at Mastercard Economics Institute said “Our latest Spending Pulse forecasts show cautious optimism among UK consumers, many of whom will remain cost-conscious this festive season as navigating inflation, higher mortgage payments, and an uncertain economic environment. The good news for UK retailers and the hospitality sector is that there is a continued desire to spend, particularly on gifts and dining out.”