Consumers will keep saving rather than go on Christmas spree, say economists
A much-anticipated Christmas spending spree is unlikely to materialise despite consumers having around £150bn of savings on deposit to splash on toys, food and festive parties, economists have warned.
According to a study by the Institute for Fiscal Studies, much of the savings built up during the pandemic will remain in household bank accounts until the economic outlook is more upbeat.
A survey that formed part of the analysis for the report found that when people were asked what they would do with an extra £500, they said on average that only £55 would be spent over the next three months.
Richer households were more likely than poorer households to report they would use the extra funds to add to their savings, the IFS said. Poorer households
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