Households are coming into the brand new 12 months feeling financially safe, a brand new survey suggests, however are much less sure concerning the well being of the economic system extra broadly.
KPMG UK’s newest shopper pulse survey means that 57 per cent of individuals really feel financially safe, whereas 21 per cent really feel insecure.
Half of the survey respondents mentioned they might spend freely, whereas simply three per cent mentioned they might not pay important payments or have been incurring debt to take action.
“Whether or not attributable to confidence of their skill to spend or their skill to handle family payments, it’s optimistic information that almost all of UK households are heading into 2025 feeling financially safe,” Linda Ellett, head of shopper, retail and leisure for KPMG UK, mentioned.
The optimistic image from households contrasted with a extra gloomy view concerning the state of the economic system.
4 in ten customers mentioned the economic system was worsening, in comparison with 1 / 4 who mentioned it was bettering.
These aged over 65 have been probably the most pessimistic age group concerning the economic system, with 66 per cent suggesting it was getting worse.
KPMG’s survey builds on quite a few measures which counsel that shopper confidence has taken a success for the reason that finish of the summer season.
Hypothesis concerning the Finances clouded the outlook for households within the months earlier than October’s fiscal set piece whereas the occasion itself offered little consolation for customers.
Nevertheless, the survey additionally reveals that eighty per cent of customers plan to make huge ticket purchases subsequent 12 months, with a vacation (39 per cent) the preferred choice.
“Deliberate spending on huge ticket objects over the subsequent twelve months appears wholesome,” Ellett mentioned.
“Whether or not that spend involves fruition will rely upon a spread of things, together with continued discount in rates of interest and whether or not notion about financial worsening turns into a actuality within the type of elevated job insecurity,” she added.
