Over one third of Britons are expected to tighten their purse strings in light of the vote to leave the European Union, a decision which plunged the financial markets into turmoil.
According to Retail Economics poll of 2,000 people, some 37 per cent said they would cut spending on larger purchases such as TVs, holidays, bathrooms and furniture. A further 58 per cent said they also hold back spending on non-essential items with the researches predicting that electricals and DIY would be the areas hardest hit.
Nearly two-thirds (61 per cent) are now concerned that the cost of food may rise as a result of the vote.
"The results from our Consumer Attitudes Survey show concerns over the future of the economy, personal finances and rising costs of living are likely to choke off consumer confidence and spending," said Richard Lim, chief executive of research group Retail Economics.
"With the consumer sector the driving force behind the economic recovery so far, it is difficult to see what can compensate should a more widespread slowdown materialise.”
Ryanair is one company that has already reacted to the decision, saying that it will focus on expanding its business within the EU rather than the UK. Elsewhere, the chief executive of Next has predicted that the price of food and clothing will increase as soon as next year.
The survey revealed also that three in five Britons are worried about the outlook for the UK economy and believe Brexit will have a negative impact on personal finances.
According to a separate survey by the Institute of Directors (IoD), one in five businesses are looking to move some of their operations out of the UK while with a quarter has put hiring plans on hold in light of the UK’s decision to leave the EU.