Britons cut their January spending on consumer goods for the first time in five years as concerns about household finances and the wider economy in the year ahead begin to bite.

Worried households squeezed their January spending for the first time since 2013, as the lure of the annual post-Christmas sales failed to lighten Britain’s consumer gloom, according to the latest data from Visa’s consumer index.

The report showed that household spending fell by 1.2pc compared to the year before. The spending slump followed a sharp 4pc decline in high street shopping and a slowdown for online retailers to just 1.5pc above last year.

Mark Antipof, of Visa, said clothing, furniture and household goods “bore the brunt of consumers’ caution yet again”.

“Spending on the British high street in general fell sharply as the traditional January sales failed to bring shoppers out in numbers this year,” he added.

Even the spending boom on nights out and holidays, which has defied economic worries in recent years, cooled in the first weeks of 2018 with slower growth of just 3.7pc. The gloomy start to the year is the eighth drop in monthly figures over the last nine months. 

Retailers will be hoping to tap an expected spending boom later this month as the Chinese New Year brings a flood of tourists into the UK. Analysts at Forward Keys expect an 8pc growth in the number of Chinese tourists to Britain for the February celebrations compared to last year, which delivered a 93pc increase in sales to Chinese tourists mainly in the Birmingham, London and Bicester Village areas. However, retailers may face further pressure in the year ahead after a report from Retail Economics revealed households’ rising concern over their personal finances and the wider economy.

The report, undertaken alongside NatWest, shows a third of households expect their personal finances to weaken in the next 12 months compared to last year. This rate is higher among less affluent households, where 40pc expect their financial position to deteriorate as the pressure of inflation takes its toll. Households are most worried about “rising prices in shops”, while 24pc said a “weakening economy” was their top concern as Britain’s exit from the EU draws nearer. 

The consumer jitters are underpinned by growing credit card debt and fears that interest rates may begin to rise faster than expected. The Resolution Foundation said overall household debt has reached £1.9 trillion after climbing 10pc over the course of last year. The group warned that the hangover of the last credit bubble still haunts low income homes.