Economic impact
Non-essential spending
Non-essential spending
Higher cost of goods is the primary factor likely to impact discretionary spending in the next 12 months. With inflation having already fallen significantly, we should see this sentiment soften as we get into the second half of 2024.
With interest rates remaining higher and not easing until the second half of the year, this will impact the discretionary spend of some 1.6 million consumers on fixed rate mortgage deals due for renewal in the next 12 months. This will impact both homeowners and renters' ability to purchase non-essential goods in 2024.
Gen X are most concerned with the higher cost of goods with 83% saying this will influence their non-essential spending in the next 12 months.
of Millennials are worried about their current level of debt saying this will impact their discretionary spending.
High interest rates are the primary concern for those earning over £80k per year.
Cost of living crisis
The cost-of-living crisis continues to impact financial resilience and is predicted to define consumer spending well into 2024.
Our survey found that consumers have slightly more disposable income at the end of 2023 than in 2022. The average percentage of income that consumers can use for non-essential goods after paying their bills is 17%, which is up from 15% last year.
Don’t know’ has been excluded from charts so percentages may not add up to 100
Working age consumers are most impacted
At 38%, almost twice as many working age consumers say they have no money left after paying for bills each month, compared to 22% of Baby boomers.
