Asda is to ramp up its round-pound deals this Christmas as shoppers count their pennies ahead of the festive season.

Asda shoppers will be cutting back on decorations and presents so that adults can spend more on their kids this year, according to the retailer’s Mumdex research released today.

The research showed that 26% of mums started saving for the festive splurge in January, while a third purchased presents for Christmas in this year’s January Sales.

The cautious outlook contrasts with GfK consumer confidence data revealed this week, which showed sentiment rose to its highest point since April 2010 in July.

Asda chief marketing officer Stephen Smith said: “This year we committed to holding down the price of essentials.

Christmas is no different, which is why this year we will have our biggest ever range of 50p and £1 items in store.”

The research also showed 6% of mums who bought Christmas cards in 2012 will not be carrying on the tradition this year.