A recent survey has shown that attitudes to buying costly items have worsened, prompting concerns of a disappointing Christmas on the high street.
The survey, conducted by Markit, said spending attitudes had worsened in November at the fastest rate since the household finances survey was introduced in February 2009.
While the findings also showed that spending increased in general, this is likely because consumers tapped into their savings, facing higher levels of monthly debt.
There have been concerns that major purchases will continue to descrease when VAT is increased to to 20%, with already nearly 30% of 1,500 households surveyed saying their finances had worsened since October.
The rising cost of necessities has also resulted in household expenditure increasing at a record rate month-by-month.
The household finance index came in at 38.9, down from 40.0 in October, already well below the 50 no-change level.