Hopes that consumer spending would fuel a UK economic recovery have taken a knock after non-essential spending fell early this year.
Some 52% of those polled in KPMG's Consumer Pulse survey said they had scaled back non-essential spending during the first three months of the year.
Just 3% said they had been able to spend more on luxuries over the same period.
Common discretionary spending, such as travel and alcohol, saw the majority of cutbacks, according to the survey, followed by clothing and takeaways.
“Should macroeconomic conditions lead to an easing of pressure on household budgets, then four times more consumers say they would boost or replenish their savings, rather than spend more on non-essentials,” KPMG’s Linda Ellett commented.
“If true, it raises significant questions about whether taming inflation leads to a consumer spending boom, or just a rebuilding of savings balances that some consumers have used to offset, or totally pay for, the higher cost of essentials over recent years.”
Analysts had said that consumer spending could fuel economic growth throughout this year after ONS data showed a 0.1% uptick in UK gross domestic product (GDP) in February.