Source: Sharecast
According to the latest consumer sentiment monitor from the British Retail Consortium, expectations for overall spending over the next three months was 18 in October, up four points on September.
Expectations for spending on retail specifically was also higher, rising to 14 from five.
At the same time, personal saving expectations fell nine points to -9.
However, consumers also flagged concerns about their personal finances and the wider economy.
Expectations for the economy improved just one point, to -35, while the personal financial situation index softened to -11 from -7.
Helen Dickinson, BRC chief executive, said: "With Christmas now around the corner, expectations of spending, particularly on retail goods, rose sharply, with a corresponding drop in expected savings.
"Worries about the cost of Christmas, coupled with concerns about potential tax rises in the upcoming Budget, are likely to have contributed to the drop in sentiment around personal finances."
Persistently stubborn inflation and historically high interest rates continue to weigh heavily on consumers.
Food prices reached 5.1% in August. However, data from the Office for National Statistics on Wednesday showed food price inflation had fallen to 4.5% in September, the first decline since May 2024.
Consumer prices inflation held steady at 3.8%, prompting hopes that the Bank of England may trim interest rates again sooner than expected.
The BoE has cut the cost of borrowing three times so this year, to 4%.
A total of 2,000 UK adults were surveyed by Opinium for the BRC between 7 and 10 October.
