Financial survey reports ‘cautious optimism’ among consumers

A new survey, conducted by marketing consultancy Serendipity2, has revealed the changing attitudes to financial security and spending habits across the country.

Overall, more than half, 59 per cent, of 2,000 respondents said they feel financially secure, although the highest levels of satisfaction came from those in the South West, 65 per cent, followed by London and South East, both 63 per cent, compared with almost half of those in the East of England, 49 per cent, who confirmed they are feeling less secure about their financial outlook.

There are signs of cautious optimism, with more than half, 56 per cent, of all adults reporting that they feel positive about their future in general.

When considering the regions, those with the greatest levels of positivity are in the South East and London, both at 61 per cent, followed by those in the East Midlands, 60 per cent, and Scotland, 59 per cent.

Spending Habits

While the overall outlook is looking more positive, spending habits are changing in the face of inflation and cost-of-living. Three quarters, 75 per cent, said that value for money reigns when it comes to choosing which brands, followed by quality and reliability, which were both mentioned by more than half of those interviewed, 55 per cent and 54 per cent respectively.

About eight in 10 adults said they are having to spend more on their household energy and food bills, while six in 10 are spending more on fuel than they were 12 months ago. As such, people are generally compensating by spending less on leisure activities, such as going out to eat or drink, or to the cinema, theatre, concerts and sports events.

What Sacrifices Are Being Made?

Firstly, about four in 10 said they are less likely to be putting money into savings. In order to afford other items, more than half, 55 per cent, of adults would refuse to forgo heating, and almost half, 48 per cent, their car. Eating and drinking out, in addition to takeaways came out as the luxuries most likely to be sacrificed in order to compensate for other more essential expenses.

As people opt to stay in more to save money, about a quarter of adults say they would not forgo their TV channel subscriptions. A further one in three said they would not be willing to sacrifice holidays, with the over-55s, and households with incomes in excess of £40,000 being the least likely to surrender planned vacations.

Peter Flood, Serendipity2 chief executive officer, said: “Our survey findings show that while many consumers are being more cautious about where they spend their money, future optimism is starting to come into play, although value for money still rules when it comes to which brands consumers are choosing.

“Not surprisingly, reliability and trustworthiness are also elements that feature heavily in purchase decisions, while sustainability and environmental credentials are also likely to be a consideration for nearly one in five consumers, which should be noted by brands as they plan their go-to-market strategies for the remainder of the year and into 2024.”

To download a copy of the Cost-of-Living Survey report analysis, see serendipity2.com/cost-of-living-survey