KPMG: UK households plan to splash the cash in 2025
Households are entering the new year feeling financially secure, a new survey suggests, but are less certain about the health of the economy more broadly.
KPMG UK’s latest consumer pulse survey suggests that 57 per cent of people feel financially secure, whereas 21 per cent feel insecure.
Half of the survey respondents said they could spend freely, while just three per cent said they could not pay essential bills or were incurring debt to do so.
“Whether due to confidence in their ability to spend or their ability to manage household bills, it is positive news that the majority of UK households are heading into 2025 feeling financially secure,” Linda Ellett, head of consumer, retail and leisure for KPMG UK, said.
The positive picture from households contrasted with a more gloomy view about the state of the economy.
Four in ten consumers said the economy was worsening, compared to a quarter who said it was improving.
Those aged over 65 were the most pessimistic age group regarding the economy, with 66 per cent suggesting it was getting worse.
KPMG’s survey builds on a number of measures which suggest that consumer confidence has taken a hit since the end of the summer.
Speculation about the Budget clouded the outlook for households in the months before October’s fiscal set piece while the event itself provided little comfort for consumers.
However, the survey also shows that eighty per cent of consumers plan to make big ticket purchases next year, with a holiday (39 per cent) the most popular option.
“Planned spending on big ticket items over the next twelve months looks healthy,” Ellett said.
“Whether that spend comes to fruition will depend on a range of factors, including continued reduction in interest rates and whether perception about economic worsening becomes a reality in the form of increased job insecurity,” she added.