80% will spend less this Christmas

The majority of people say they will spend less this Christmas than they did last year as the economic downturn threatens to dampen the busiest time of the year for retailers.

A survey by the Institute of Customer Service (ICS) found that 80% planned to spend less, with women more likely to rein in spending than men.

The youngest age group in the survey - those aged between 16 to 24 - was most likely to increase spending, with 25% saying they would spend more than in 2007.

"Christmas is the busiest time of the year for many businesses, so this trend will make for worrying reading," said David Parsons, chief executive at ICS.

"People will still be buying presents for their loved ones, but with less money to spend they will be more careful where they shop, so it is important for retailers to ensure consumers want to visit their stores.