With the cost of living cut underway, 32% of consumers plan to cut household spending this year, according to a survey of 3,000 UK consumers by KPMG.
Only one in ten (9%) said their spending will increase, while half expect their spending level to stay the same this year as in 2021.
Spending less on dining out was the most common response (55%) among consumers looking to cut household spending in 2022, and half aimed to spend less on clothes, reaching 59% among women surveyed. This was followed by 49% who said they would cut take out orders.
Linda Ellett, Head of Consumer, Leisure and Retail Markets at KPMG UK, said: Are considering increasing their spending.
“Faced with inflationary pressures, some companies are considering raising their prices, or have done so. But they will be aware that they are operating in a market where consumers themselves have to tighten the purse strings.
“The competition for the share of the portfolio in 2022 is intensifying. It is vital that companies double their productivity, the value and efficiency of their supply chain, and assess whether new products or offerings can give them an edge in this landscape.
A quarter (26%) of those surveyed had failed to save during the pandemic. Of the 74% who had done so, rising prices for goods and services were identified as the biggest obstacle (23%) to saving spending, followed by higher taxes and household bills (17 %), then the uncertainty linked to the pandemic (13%).