Two-thirds of British consumers have seen their disposable income crash through the floor in the past 12 months, and predict it will continue to do so this year, with no light at the end of the tunnel for the cost of living crisis.
That is according to new figures released in YouGov’s new Financial Outlook 2023 global whitepaper, derived from YouGov Profiles.
Although there is no consensus on how much their disposable income has fallen – respondents simply described it as “a lot” – the UK figure is higher than Germany (66%), France (64%) and the US (52%), and the fourth highest globally.
Brits also report the highest proportion expecting to face further financial challenges in the year to come. Six in ten Britons (60%) expect their disposable income to decrease in the next 12 months (29% decrease a lot and 31% decrease a little).
Overall, European markets have a more pessimistic view on future disposable income compared to the US and Mexico, and APAC regions, arguably because they will be more exposed to fuel price rises due to the Russian invasion of Ukraine.
Of the 18 countries included in the study, Britain’s spending power has been most impacted globally in the last 12 months. YouGov’s Discretionary Spend Index (DSI) finds it to have the highest negative impact score at -52%.
Britain is closely followed by Italy (-49%) and Poland (-46%), while the US stands -36%, all of which are higher than the global average of -35%.
Earlier this month, research from eBay Ads UK found that Brits are being forced to buy pre-owned car parts and attempt to fix their motors themselves, shying away from costly garage and mechanic expenses.
This appetite for DIY car maintenance was supported by insights which show that a growing number of Brits are investing in the tools and equipment to fix their cars at home.
At the time, eBay Ads UK general manager Upasana Gupta commented: “As purse strings continue to tighten, consumers are understandably looking for ways to cut costs in all areas of life. Having an ear to the ground about these trends will help firms to prepare and cater to customers’ evolving needs and preferences in the year ahead – driving sales forward.”
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