In a poll, consumers in the 35- to 54-year-old age group said that they would be cutting spending rather than increasing it. This group is traditionally big spending, both on family and themselves.
Mediaedge:CIA's survey shows a 12% drop in confidence compared with last year, with confidence levels falling even further among those in the AB bracket, down by 17% compared with last year.
David Fletcher, head of research at Mediaedge:CIA UK, said: "The findings not only reflect negative factors such as the decline in the job market, fears about the economy and a lack of consumer confidence, but also the strength of the housing market and homeowners' investment in home improvements has diverted expenditure away from traditional spend in areas like Christmas."
He said that retailers would need to ensure current expectations did not lead to overstocking, and consequent pressure on January sales.
Mediaedge:CIA is part of the WPP Group and was created in November 2001 when The Media Edge was merged with CIA, which was formerly part of the Tempus Group.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .