Consumer confidence plunges: Spending shrinks by one billion, how will cost pressures reshape market expectations

2025-12-26 07:40:11

【CryptoWorld】The holiday shopping season has become a test of consumers’ wallets. UK consumers are expected to spend only 3.6 billion pounds on Boxing Day this year, a decrease of 1 billion pounds compared to last year. Even more concerning is engagement—only 26% of people plan to continue shopping, down from 28% last year. Although the difference seems small, it reflects a significant decline in consumer willingness.

Interestingly, despite fewer participants, the average spending per consumer who continues to shop has increased to 253 pounds. What does this indicate? It’s not a matter of purchasing power but selective consumption.

The root cause is straightforward: nearly 70% of consumers cite tight budgets. Banking institutions point out that these cost pressures mainly stem from rising living expenses. To make matters worse, recent tax policy adjustments—freezing the income tax threshold and increasing tax rates—further squeeze consumers’ disposable income. As a result, consumer confidence index had already fallen to -19 before the budget announcement, and this number could continue to worsen once the policies are implemented.

For retailers, this is not just a decline in sales but a need to rethink the long-term market outlook.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

14 Likes

Reward
14
10
Repost
Share

Comment

0/400

SellLowExpert

· 2025-12-29 07:39

Cutting losses to the point of collapse is indeed true. The British are now living paycheck to paycheck just like us. Losing 1 billion pounds is gone, but those still buying are averaging 253 pounds per person? That's the real wealth gap. When policies adjust, tax rates go up, and people's disposable income is directly drained, no wonder consumer confidence plummets. If I were British, I would also have to tighten my belt. The term "selective consumption" sounds nice, but it's actually just being forced to buy only essentials. Who really wants to live like that? Cost pressures keep coming wave after wave. Who can withstand it? It seems the whole world is the same, and the cutting losses mode has been activated.

View OriginalReply0

BearMarketSurvivor

· 2025-12-29 00:07

Isn't this the true portrayal of retail investors? The cost of living skyrockets, taxes increase even more, and wallets are drained—who still has the mood to buy, buy, buy?

View OriginalReply0

Lonely_Validator

· 2025-12-28 20:44

Wow, are the Brits really out of money? Saying 1 billion pounds is a small amount... By the way, this data is interesting. Engagement is decreasing but per capita spending is rising, which means the wealthy are still spending. I believe nearly 70% are tight on budgets, and tax adjustments hit directly. Consumer polarization is becoming more obvious, with stories of extreme poverty and billionaires. Honestly, how long will this inflation cycle last... With such strong pressure on fiat currency devaluation, no wonder everyone is looking at crypto assets. People are afraid to spend during the节礼日, indicating some economic issues. Selective consumption is actually forced consumption; if you can avoid buying, you do. The UK's tax policy will make Bitcoin rise. 26% shopping rate, are the rest just saving money to self-rescue? It feels like global consumption is shrinking, not an isolated phenomenon.

View OriginalReply0

SilentObserver

· 2025-12-26 08:09

Less people, yet the average expenditure increases? Isn't this just the wealthy continuing to indulge while the poor have already given up? This round of tax policies in the UK are really harsh, no wonder everyone is shouting bankruptcy. 26% participation rate, how long will it take to shrink to that level? One billion, just gone like that, consumer confidence has indeed collapsed. Selective spending sounds nice, but in reality, it's just being forced to be rational due to lack of money. The group with an average of 253 pounds probably didn't even take this reduction seriously. Every time I see this kind of data, I feel it’s becoming increasingly difficult for ordinary people. Once the budget is announced, disposable income directly evaporates. How is this even possible? I just want to ask, when will we see a consumption rebound? Or do we have to wait for policy easing?

View OriginalReply0

GateUser-c799715c

· 2025-12-26 08:09

Are the British starting to be stingy? Or is this wave of inflation really confusing everyone? The most alarming signal is the decline in consumption willingness, indicating that it's not a lack of money but a lack of desire to spend. Per capita expenditure is actually increasing... Wait, so the logic is that those who stay are true buyers? When taxes freeze, income shrinks—this combination of measures is really tough, no wonder wallets are getting thinner. 26% of people are still buying—where do these people get the courage from... The key is that everyone is on the defensive; no one wants to take risks with spending anymore, and that's the scary part. In times of tight budgets, consumers should also shift their strategies, thinking about how to hedge against this pressure. Interestingly, when will the crypto world start paying attention to traditional consumption data? The market is really changing.

View OriginalReply0

SerLiquidated

· 2025-12-26 08:06

It's the same old story of economic downturn again, consumers are backed into a corner. A billion pounds can be lost just like that, these days are really tight. Tax adjustments can ruin everything, disposable income shrinks again, no wonder people are buying very cautiously. It's really not that they have no money, but that they have to budget carefully. Participation dropping from 28% to 26% doesn't seem like much, but what does this trend indicate—people are starting to lie flat. Per capita spending actually increased? That’s right, the remaining ones are truly wealthy or genuinely in need, the chives have already been harvested almost completely. Once consumer confidence collapses, it's hard to recover. This round of policy adjustments is really ruthless. The lower class is being squeezed even harder, the middle class is starting to hold back, and the wealthy will continue to spend as they please. Even the shopping season can't save it, which shows the situation is serious.

View OriginalReply0

RumbleValidator

· 2025-12-26 08:04

Data doesn't lie. A 26% plunge in participation rate, while average spending rises to 253 pounds... This is a signal of market re-pricing. 70% claiming to be broke isn't true poverty; it's a decline in cash flow verification efficiency. Tax freezes directly cut disposable income, and the consensus mechanism has also changed — consumers' "verification nodes" have become invalid.

View OriginalReply0

GasGoblin

· 2025-12-26 08:02

Are the British people starting to tighten their belts now? A per capita expenditure of 253 pounds is quite generous. All the guys have been squeezed dry by tax policies, so what's the point of shopping? Is it a matter of purchasing power? Nah, it just means they really don't have money. Don't wear a high hat about this. 70% of people are on tight budgets. That number sounds outrageous. Where are the promised developed countries? No one is buying, a few are still splurging. This polarization... it's a bit interesting. The willingness to spend is declining, but it's not by choice. Just look at those tax adjustments... The holiday season has turned into a psychological war. Whoever dares to spend will suffer losses. Selective consumption sounds fancy, but honestly, it just means no money, so you have to choose carefully, brother. How to fill this billion-pound gap? Market confidence is being squeezed out little by little. It might get even worse later.

View OriginalReply0

PebbleHander

· 2025-12-26 07:58

The British are all poor now. 1 billion pounds can disappear just like that. Who still has the mood to celebrate festivals these days? With a tax adjustment, it's like cutting leeks directly; disposable income instantly evaporates. Only 26% of people are still buying; are the rest starving? Laugh out loud. Selective consumption sounds nice, but actually it just means no money. Now I understand, an average of 253 pounds per person really means the wealthy are supporting the market, and the middle class are dropping out. Tight budgets are a polite way of saying no money. The index decline is the same across countries; inflation devours people without leaving bones.

View OriginalReply0

ResearchChadButBroke

· 2025-12-26 07:48

The British really can't hold it together anymore. Losing 1 billion pounds is just gone, and that tax cut was a bit harsh. --- Per capita 253 pounds still insist on buying? This is what they call "wealthy consumption," while the lower classes simply can't move. --- 70% budget tightness is truly heartbreaking. How can they stimulate consumption? Is it a policy counter-operation? --- Selective consumption is just a saying for the poor; in reality, it's being forced to shrink. --- Boxing Day has become "Day of Mourning." Consumer confidence index is probably going to plummet to the floor. --- Participation rate dropping from 28% to 26% doesn't seem like much, but multiplied by the entire UK population... how much less money is spent? --- Freezing the income tax threshold is a brilliant move; it's openly going against consumer willingness.

View OriginalReply0