Shoppers rein in spending amid concerns about rising cost of living, reveals new study

A new study has revealed that 44 per cent of people in the UK have less money than before the pandemic. Moreover, 21 per cent are worried about job security while 37 per cent don’t feel confident about parting with their cash.  

The findings are taken from Toluna’s Global Consumer Barometer Study, a regular index that taps into a community panel of 36+ million members. Its latest research surveyed 1,066 people in the UK.

Elsewhere in the poll, over half (54 per cent) said they choose a new brand, product or service based on price. Only 14 per cent said they make a purchase just because a product is environmentally friendly or sustainable.

Unsurprisingly, the rising cost of living is impacting shoppers’ spending decisions. A third (33 per cent) plan to spend less on going out to eat this year to curb their spending while 32 per cent will opt for a cheaper holiday.  

Shoppers plan to eat out less; photo by Andrew Seaman on Unsplash

Lucia Juliano, Toluna head of research, comments: “It’s clear that we’re living with the long-lasting impact of Covid-induced repeated lockdowns, ongoing restrictions and uncertainty around the economy. Couple this with rising energy costs, inflation and other household bills and you have a perfect storm of financial worry and uncertainty.

“Despite the Covid situation easing once again, the appetite to spend money on such activities is a lot weaker than before Covid. As the cost of living rises, people are choosing to spend less and save more, with insecurity around personal finances remaining high.”