British shoppers are strapped for cash
Thursday, 11 August 2011 12:00
The number of British consumers who feel they have no disposable income at all has reached an all-time high.
According to new research from the British Retail Consortium, almost a third (32 per cent) of shoppers feel that they are struggling to make ends meet.
This is despite the fact that the BRC has witnessed a recent rise in consumer confidence.
In the last quarter there was a slight improvement in spending outlook, but the BRC noted in its Consumer Confidence Survey that spending is still in the doldrums.
Released today, the research, which is a collaborative project between the BRC and Nielsen, shows that during the next six months, consumers are expecting their finances to remain stretched.
The number one concern is the increasing cost of utility bills, followed by fears that the British economy is - and will continue to - under perform.
Shoppers are also worried about the rising cost of fuel and other, household items.
Some 71 per cent of those surveyed by Nielsen and the BRC said that the economic turmoil had forced them to change their spending habits, with more than two-thirds (65 per cent) switching to a cheaper supermarket.
Nielsen managing director for UK & Ireland Chris Morley said: "We expect to see confidence boosted by a feel-good factor next year around the Olympic Games but until then - with price inflation running well ahead of any wage increases, renewed economic instability across Europe and a new round of utility bill hikes - it's hard to see any improvement in mood being sustained."
He added that shoppers are starting to cut back on the necessities and may continue to do so until economic pressures ease.
Mike Regnier, director of current accounts for Lloyds TSB, recently claimed that a lull in consumer confidence would not be a surprise considering the sheer quantity of bad economic predictions doing the rounds at the moment.
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