Widespread Worry: More People Declare the Economy in Decline

UK Households: Feeling Cool, but the Economy’s Got the Gloom

When December’s consumer pulse was tapped in, most UK families say they’re walking into 2025 with pockets that feel a tad snug. “I’m covered,” they claim, as the tension between personal finances and national health rages on.

Key Take‑Aways from KPMG’s 3,000‑Person Study

Personal Success Rate: Over half of respondents say they’re confident about their own money situation.
Economic Outlook: A sharp majority still worry that the broader economy is sliding, not climbing.
Diversity Matters: Findings spanned every region, age, and income bracket—no single group got a wash spread too.

So here’s the scoop: on paper, most households are feeling financially secure. Yet the bigger picture—what’s happening on the streets, the markets, and the bank—still feels like a rollercoaster with a few too many drops.

What does this mean for you? Keep your savings tight, keep an eye on your spending, and remember: that economy’s mood board is still a work in progress.

Financial security

Feeling Secure in 2024: The Usual Finances Show

Some Good News, Some Not So Good

57% of folks are feeling pretty comfy in their wallets, while 21% are looking a little uneasy. That’s the latest snapshot before the year wraps up.

What This Means in Plain Talk

Half the crowd can treat themselves to small luxuries on the go, but longer‑term splurges—think renovating the kitchen or buying a fancy car—still need a little planning.
About a third are juggling budgets every month, making sure those discretionary buys stay in line.
One in ten feel the crunch: they have to cut back or rip the cord on their tiny pleasures just to keep the essential bills paid.
Only 3% are in the red so badly that they can’t even manage the basics, or they’re drowning in debt to get through.

Bottom Line

While the majority feel confident, a noticeable stump of the population still has a financial cliff to navigate. It’s a reminder that budgets matter—especially when you’re planning those big buys.

Economic outlook

How Brits Feel About Their Wallets and the Economy

Picture this: most people feel secure on their finances, so they’re biting their nails a little less when they open their bank apps. But when you ask them about the state of the UK economy, the answers are a bit more mixed.

Mixed Feelings, Straight‑Up Numbers

~40 % of consumers think the economy is worsening, like a rainy day that just won’t shake off.
Only about 25 % feel the economy’s improving, like a bright sunny day after that drizzle.

Age‑Based Moods

The scowl is widest among those who are thirty‑plus, but the main disappointment comes from the “senior” crowd.

Three‑quarters of people aged 65+ aren’t optimistic about what’s coming.
On the flip side, those in the 25–34 bracket are the most upbeat—maybe because they’re still working their way into the right degree… cup of tea?

Region Matters

Location has a big influence on mood. London residents see the future as a likely bright one, while folks in the North East are a bit more bummed.

London: happiest
North East: most downbeat—often said as “All feel-COVID, still feeling-blue.”

So whether you’re planning your next budget or just chatting about stocks, remember that emotion and numbers often don’t mix as neatly as one would hope!

2025 spending intention

Ready to Spend Big in 2025? The 2024 Consumer Forecast

Even though people are debating the health of the economy, a whopping 80% of shoppers are gearing up to make major purchases next year. The most popular pick? A getaway trip, with 39% planning a vacation. A 20% are eyeing minor home upgrades, 10% are set to buy a new car, and another 10% are lining up a new phone.

Money‑Saving Moves for 2025

The sweet spot for saving comes from insurance swaps – about a quarter want to ditch their current car insurer and a quarter are looking to switch home insurance for a better deal.

What Could Push Spending Higher?

Things that could nudge folks to spend more than in 2024 include:

Wage increases – a key driver that could lift budgets.
Retail promotions – a third of consumers say store events can pull them off their savings sheet.
Loyalty perks – a quarter think slick loyalty offers will sweeten the deal.

Expert Take: Linda Ellett on Consumer Confidence

Linda Ellett, Head of Consumer, Retail and Leisure, KPMG UK, says: “Whether you feel confident spending or juggling bills, the good news is that most UK households are heading into 2025 feeling sound financially. Even though four in ten see the economy’s slipping, the planned big‑ticket spend over the next year looks robust. Whether that spend happens will hinge on lower interest rates and whether worries about a worsening economy really do mean more job insecurity.”

Spending in the last three months

What’s Driving Your Wallet in the Last Three Months?

Take a quick look at the numbers: in the period from September to November, shoppers cut back the most on dining out, while groceries became the top‑spending category. Even the kitchen’s getting a bit more star‑rated than your favorite take‑away spot!

How Are You Saving (or Spending) Your Cash?

Half the folks are buying big‑ticket items – think holiday gifts or new household appliances. Big splash days, right?
About one‑quarter of shoppers are hunting for promos and discounts, grabbing the sweet‑deal slice every time it’s on offer.
Price remains the champion driver for both everyday buys and those pricier one‑offs.

Why Are Deals Still the Main Magnet?

Linda Ellett summed it up perfectly: “Promotions and loyalty rewards prove shoppers are still smart detectives hunting for the best bargains. By 2025, up to a third of consumers could actually spend more if the offers hit the mark.”

The takeaway? Retailers are sharpening their game, using customer data and AI to push highly personalized deals over the next twelve months.