Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

British consumers try to cut costs at fastest pace in two years - Nielsen survey

Published 17/08/2017, 07:12
© Reuters. FILE PHOTO - A woman holds a Union Flag shopping bag in London

LONDON (Reuters) - More Britons tried to rein in their spending in the second quarter of this year than at any time since 2015 as rising inflation squeezed household incomes, according to a survey published on Thursday.

Some 53 percent of Britons scrimped between April and June - the highest proportion since 56 percent did so during the same period of 2015, market research firm Nielsen said.

This marked a swing back towards household cost-cutting over the course of the past year, which had been at its lowest level on record - 40 percent - in the two months after the Brexit vote in June 2016.

But sterling's sharp depreciation in the immediate aftermath of the referendum - making imports more expensive - has pushed up shop prices at a time when wage growth is largely stagnant.

Official data published on Wednesday showed that wage growth fell by 0.5 percent in real terms in the three months to June.

Nielsen said Britain declined from second in Europe's consumer confidence rankings just before the Brexit vote to the ninth now.

Shoppers have changed their behaviour in a way that is reminiscent of the aftermath of the financial crisis in 2008/9, said Steve Smith, managing director of Nielsen UK and Ireland.

Thirty percent of respondents cited switching to cheaper grocery brands as their money-saving tactic, with another 27 percent working to save on gas and electricity.

A quarter of respondents spent less on new clothes and take-away meals, while fewer were willing to cut down on out-of-home entertainment, holidays and alcohol.

"Shoppers are well-trained to use their household grocery budgets as a way to manage overall household costs, particularly as the desire to treat themselves remains," said Smith.

© Reuters. FILE PHOTO - A woman holds a Union Flag shopping bag in London

"This is shown by the fact relatively fewer people are willing to sacrifice entertainment, holidays and takeaway meals."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.