Table of Contents
Key Findings
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- No real signs of the “Brexit blues” for most consumers…
- …but there are warning signs ahead…
- …particularly among lower-income households
- Prices remain by far the biggest Brexit-related concern
- Key economic indicators
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- Figure 1: Key Economic Indicators, January 2017
Consumers’ Response to the EU Referendum Result
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- What you need to know:
- The cost of living is the biggest concern…
- …and these worries are already affecting consumer behaviour
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- Figure 2: Consumer views on the impact of the EU Referendum on the UK economy, December 2016
- People are more relaxed about what Brexit means for their own finances
- Generational differences: the squeezed generation are particularly worried
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- Figure 3: Expected impact of the EU vote, by age, December 2016
- Changes over time: the initial bounce has started to fade
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- Figure 4: Consumer views on the impact of the EU Referendum on the UK economy, July-December 2016
Current Financial Situation
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- What you need to know:
- A happy new year…
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- Figure 5: “How would you generally describe your financial situation at the moment?”, January 2017
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- Figure 6: The financial wellbeing index, February 2009 - January 2017
- …for retailers as well as for consumers
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- Figure 7: Non-seasonally adjusted retail sales (including fuel), 2014-2016
- The stretched minority
Changes in Financial Wellbeing
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- What you need to know
- Finances continue to improve, but the rate of improvement is slowing
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- Figure 8: “How would you describe your finances compared to a year ago?”, January 2017
- The impact of Sterling’s fall is still finding its way into the system
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- Figure 9: Changes in household finances, July 2011 – January 2017
- Higher earners: full steam ahead…
- ...reflecting post-vote concerns about a divided Britain
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- Figure 10: Average wage growth and consumer price inflation, 2007-2017
Financial Confidence
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- What you need to know
- Confidence is still on a gradually rising trend
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- Figure 11: “And how do you feel about your financial situation over the next year or so?”, January 2017
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- Figure 12: The financial confidence index, January 2009 – January 2017
- Optimism among Millennials and retirees
- The less affluent already fear for their future
Spending Plans
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- What you need to know
- Both previous and planned spending have held up well
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- Figure 13: “Thinking about how you spend your money, which of the following have you done over the last three months? And which do you plan to do over the next three months?”, January 2017
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- Figure 14: The financial activity index, June 2012 – January 2017
- Even big-ticket purchases are holding up well
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- Figure 15: Holiday booking intentions, June 2012 – January 2017
- Confidence is reflected in spending plans
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