Consumers sceptical of wider economy, survey finds

Almost two-thirds of British consumers are optimistic about their personal finance, despite fears about the country’s economic prospects, a new survey has found.

In a poll conducted for Lloyds Bank by research group Ipsos Mori taking information from 2,000 people, 64% reported feeling positive about their personal finance situation.

That figure is just 2% lower than the corresponding survey in 2016, just before the Brexit referendum sent shockwaves around the UK.

On the national economic health, those surveyed were less optimistic however. Only 33% of people said they felt good about the financial situation in the UK, down from 45% last year.

Whilst many consumers are still yet to feel the pinch related to the fall in value of sterling since the Brexit vote, many experts have predicted prices on many goods to increase above the inflation rate soon.

64% reported feeling positive about their personal finance situation

A similar differentiation emerged in terms of employment prospects during the survey, with 80% optimistic about their own job security, while just 53% were positive about national job prospects.

Lloyds’ head of personal accounts Emma Greenwood said the mistrust of the wider economy may lead to decreased spending from consumers.

Greenwood said: “Despite positive perceptions of their own personal finances, the difference in sentiment towards the country’s financial situation points to a lingering consumer unease about the broader outlook. For some, this may reinforce a reluctance to spend.

“Meanwhile, the brisk pace of price rises will keep household budgets under pressure. Even though inflation dipped a little in June, prudent households will want to take stock of their finances and ensure there are prepared for a greater squeeze on their spending power.”