UK consumers will cut their spending by £1bn next year in an effort to take control of their finances, according to a new study.
Sales of big ticket items such a DIY goods, gardening products and electrical goods, including fridges and freezers, are expected to be hit to the tune of £900m. Spending on furniture and carpets is also expected to be reined in.
With householders hesitant about spending cash on new appliances, it is more likely that many will adopt a make do and mend attitude, choosing to repair faulty appliances rather than splash out on new ones.
Retail research firm Verdict claims that retail sales will grow by just 1.2 per cent over the next 12 months to £295.3bn. If correct it would represent the third slowest year of growth in the past 40 years.
Verdict retail analyst Maureen Hinton said: "Conditions will ease slightly with events such as Easter, the Diamond Jubilee and the Olympics improving consumer sentiment, but overall confidence will still be low."