UK consumers plan to spend 7% less this Christmas than they did last year, a survey from business advisory group Deloitte has suggested.
Deloitte warned this festive season may be "one of the toughest in decades" for retailers. The expected fall compares with a 7% rise in spending in 2007.
Yet while 24% of UK consumers intend to spend less this Christmas, the report said 57% planned to spend the same.
A further 19% of respondents said they expected to spend more.
A separate poll of parents found that many were planning to cut spending this Christmas, and that one in 10 feared a family's main bread winner would be made redundant within the next six months.
'Less socialising'
The total average amount spent per adult this year will be £655 on gifts, socialising, and food and drink, the Deloitte survey estimates.
While the overall amount spent is set to fall by 7% from last year, it is socialising where the biggest cutbacks are planned - 12% less than last year.
At the same time, more people plan to buy some of their Christmas gifts from supermarkets as they seek lower prices - 56% compared with 52% last year.
"I think the main headline is this is worst Christmas for a generation," said Richard Hyman, strategic advisor to the retail practice at Deloitte.
"But as a nation we'll be spending £36bn so it's not a total disaster.
"Broadly speaking, we believe sales will be flat this Christmas, with a slight fall possible."
Mr Hyman added that retailers will be hopeful that last week's interest rate cut will boost people's disposable incomes.
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