Varie
Two Steps Forward & One Step Back - UK Consumer Mindsets in 2015
Fewer than 1 in 3 people agree that the economy is out of recession and growing. More than two-thirds believe the economic outlook is uncertain and only 10% feel that the UK economy is likely to show sustainable growth.
These findings, from a major new study of consumer attitudes, seem hard to reconcile with most measures of economic activity, where even those viewing the Chancellor's facts with a sceptical eye are likely to concede that economic upturn is a reality. Why are so many of the British public taking a cautious view and finding themselves unable to share the optimism of the economists? Andy Baker , Research Director at ID Insight Consulting, who conducted this latest study, suggests the answer is two-fold:
"Our findings show that most people find it impossible to separate the economic situation from their own financial situation. The economic environment might be overwhelmingly positive but if they don't feel it, then they don't really believe it. Lingering economic uncertainty, for many, is a direct reflection of a lack of confidence in their own future. Only a small minority (13%) feel confident in their personal financial situation and expect it to continue improving and less than 20% agree that their position is better now than it was 12 months ago."
So why do so many lack confidence in the future?
"The impact of the recession has been so profound, that it has had a lasting impact on consumer confidence, even amongst the many whose personal situation is now pretty positive and those who, in all honesty, never really felt its full force. The psychological impact is greater than the financial impact and it is this ongoing psychological effect that has made people more cautious, less optimistic and more uncertain than financial 'reality' would suggest is appropriate."
The study goes on to explore the implications of this new reality in most aspects of consumer life, from long-term planning to short-term spending: the rise of coupon culture and 'value' brands and the decline of trust in established institutions and expert advisors. What do consumers in 2015 consider to be life's essentials and what are mere luxuries?
Notes:
ID Insight Consulting is an independent research agency, conducting consumer and business research for clients in a range of sectors, from travel and leisure to healthcare, housing, telecoms and financial services.
The study was conducted amongst a nationally representative sample of more than 1,000 adults in the UK. Interviews were conducted online, during February and March 2015 .
For more information please go to:
http://www.idinsightconsulting.com/media.html
or contact:
Andy Baker , Research Director:
M: +44-(0)7909-727480
E: andy@idinsightconsulting.com
Charley-Anne Obahor , Project Manager:
M: +44-(0)7500-221776
E: charley@idinsightconsulting.com