Financially Secure Consumers Join Insecurity Wave
- Financially secure shoppers cut spending due to UK economy fears
- KPMG UK survey reveals increasing negative economic perception
- 3 in 5 shoppers believe UK economy is worsening
- 58% of people felt the UK economy was worsening, up by 15 percentage points from last quarter
- 55% of shoppers feel financially secure but cutting back on spending
- Only 24% of consumers feel insecure about finances needing to reduce spend for essentials
- 43% reducing spend on everyday items, 36% saving more as contingency
- 29% putting off big ticket purchases
- Research based on 3000 UK consumer confidence assessment
- British Retail Consortium reports consumer confidence stabilized in March after record low in February
- GfK consumer confidence report found lowest level in a year in January
A recent KPMG UK survey reveals that three in five shoppers believe the UK economy is worsening, leading financially secure consumers to cut back on spending. The number of people who felt the economy was deteriorating increased by 15 percentage points in the last three months to 58%. However, 55% of shoppers still feel financially secure but are cutting their expenditure. While only 24% of consumers feel insecure about their finances and need to reduce discretionary spending for essentials, a significant portion of those who are taking such actions are not necessarily in dire financial situations. The global network’s research involved assessing the buying behavior of 3,000 UK consumers from December to February. KPMG UK head of consumer, retail and leisure Linda Ellett commented on the trend: ‘Our research continues to show that while only a minority of consumers feel financially insecure, the majority feel that the economy is heading in the wrong direction.’ She added, ‘Some may be taking this action as they prepare for higher costs like new mortgage deals or travel expenses. But other cautious consumers are certainly preparing for potential economic impact.’ The British Retail Consortium reported consumer confidence stabilized in March after a record low in February, while GfK’s consumer confidence report found the lowest level in a year in January.
Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about consumer spending trends based on KPMG UK’s research and includes quotes from a relevant source. It also references other related reports to support its claims.
Noise Level: 4
Noise Justification: The article provides relevant information about consumer behavior and economic perceptions in the UK, with data from KPMG’s research on spending habits and financial security. It also mentions recent trends in consumer confidence. However, it could benefit from more analysis or context to provide a deeper understanding of the factors contributing to these changes and potential long-term implications for the economy.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses how consumers’ perception of the UK economy is affecting their spending habits, with some cutting back on discretionary spend and saving more money due to economic concerns. It mentions the British Retail Consortium reporting on consumer confidence and GfK consumer confidence report, which are related to financial topics.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article, and it mainly discusses consumer behavior and economic concerns related to the UK economy.
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