More Britons think the economy is worsening instead of improving
- Four in ten say the economy is sick, according to KPMG
More Britons think the economy is worsening rather than improving, according to new findings from KPMG.
Four in 10 people said they thought the economy was sick, while a quarter said it was improving, according to KPMG’s latest UK Consumer Pulse survey.
Revised data from the Office for National Statistics this month showed the economy saw zero growth between July and September.
This week, Keir Starmer and Rachel Reeves wrote to the regulators asking them to come up with ideas for reforms that could boost economic growth.
The economy is heading for the worst of all worlds by 2025, amid a rise in employer contributions from April, according to the Confederation of British Industry.
The CBI’s latest Growth Indicator Survey shows that private sector companies expect to cut hiring, cut production and see prices rise in the first three months of 2025.
What should we do? Rachel Reeves and Keir Starmer have written to regulators for growth tips
Pessimism about the state of the economy was highest among people surveyed aged 65 or older, while those aged 25 to 34 were the most optimistic, KPMG said.
While many Britons feel nervous about the health of the economy, many households are entering the new year with a sense of financial security, KPMG research shows.
Fifty-seven percent of the approximately 3,000 people surveyed said they felt financially secure, while 21 percent felt insecure about their finances.
Half of survey respondents said they were able to spend freely, while just three percent said they were unable to pay essential bills or were falling into debt as a result.
Eighty percent of consumers say they plan to buy big ticket items next year, with a vacation being the most popular option.
Linda Ellett, head of consumer, retail and leisure at KPMG UK, said: ‘Whether it is because of confidence in their ability to spend money or their ability to manage household bills, it is positive news that the majority of British households will face 2025 with a certain financial feeling.
‘Despite four in ten people saying the UK economy is getting worse, a higher figure than those who think the economy is improving, planned major spending over the next 12 months looks healthy.
“Whether that spending will bear fruit will depend on a range of factors, including the continued reduction in interest rates and whether perceptions of economic deterioration materialize in the form of greater job insecurity.”
This week, separate data from Barclays suggested that higher consumer spending on things like shows, concerts and the cinema is expected to continue rising into 2025, while spending on essentials will fall.
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