The February consumer confidence findings from market research agency, British Market Research Bureau reveals:
At present just 9% of adults aged 16-64 feel financially secure.
41% say they do to a degree and just under half (48%) feel that they do not really/definitely do not feel secure.
Perhaps not surprisingly, social grade ABC1s (57%) are more likely to feel secure than C2DEs (40%).
18% of employees feel insecure in their employment; they will either definitely not or probably not have a job in a year’s time.
23% of adults aged 16-64 are likely to either move home or start the process of moving home/buying home in the next 3 years. This has contracted since October, when just under a third thought a move might be likely. Younger age groups are more likely to move home than older age groups.
However, there are some signs of optimism in the housing market. Just under half of all homeowners (47%) expect the value of their house to decrease in value over the next year compared to 57% in January.
Expectation of house value has returned to similar levels as in October, after a dip in November, December and January.
More than a fifth of respondents now expect their house to rise in value over the next year, compared to only 12% of respondents thinking this in December.
February’s results show just under four-fifths (79%) of adults 16-64 have cut back on purchases recently due to the current economic climate.
Respondents in Yorkshire/Humberside (87%) are most likely to have made cutbacks. Also, parents (85%) are more likely to have made cutbacks than those without kids (78%).
The percentage of the population making cutbacks is now at just under four-fifths compared to just under three-quarters (74%) back in October.
Expenditure on basic necessities
Feeding into cutbacks, just under a fifth (17%) of respondents have decreased their expenditure on basic necessities in the past 3 months. Back in October only 1 in 10 had taken such steps.
Likely future expenditure
43% of all respondents will ‘definitely not’ be spending £3000 or more on a single item of expenditure in the next 12 months.
Likelihood of £3000+ expenditure in the next 12 months has decreased dramatically since October. In October just under two-fifths (38%) expected this level of expenditure. This has dropped to just under a fifth (18%) in February.
First thing to cut back on if the financial situation worsened
33% of all respondents would cut back on holidays if the economic climate deteriorates further. This is followed by eating/going out (32%).