º£½ÇÊÓƵ households are stepping into the new year with a sense of financial security, according to the latest consumer pulse survey from KPMG º£½ÇÊÓƵ. The survey indicates that 57% of people feel financially secure, while only 21% feel insecure.
Additionally, half of those surveyed expressed confidence in their spending capacity, with a mere 3% struggling to pay essential bills or resorting to debt. "Whether due to confidence in their ability to spend or their ability to manage household bills, it is positive news that the majority of º£½ÇÊÓƵ households are heading into 2025 feeling financially secure," commented Linda Ellett, KPMG º£½ÇÊÓƵ's head of consumer, retail and leisure, as reported by .
However, this optimism at a household level does not extend to perceptions of the broader economy. Forty percent of consumers believe the economy is deteriorating, as opposed to the 25% who see it improving.
Notably, the over-65 demographic emerged as the most pessimistic about economic prospects, with 66% indicating a belief in a worsening economy. This sentiment from KPMG's survey aligns with other indicators suggesting a dip in consumer confidence post-summer.
Uncertainty surrounding the Budget and its eventual revelations in October did little to alleviate consumer concerns.
The survey further reveals a robust consumer intent for high-value purchases, with a significant 80% of consumers planning major expenditures in the upcoming year. Holidays are the preferred choice for 39% of those surveyed.
"Planned spending on big ticket items over the next twelve months looks healthy," remarked Ellett. "Whether that spend comes to fruition will depend on a range of factors, including continued reduction in interest rates and whether perception about economic worsening becomes a reality in the form of increased job insecurity," she elaborated.
