Consumers and the Economic Outlook - UK - February 2020

KEY FINDINGS
Brexit got done
Strong consumer sentiment amid sluggish economic growth
Key economic indicators
Figure 1: Key economic indicators, January 2020
CONSUMERS’ RESPONSE TO THE EU REFERENDUM RESULT
What you need to know
Sentiment improved before Brexit
Figure 2: Level of concern over the impact of the EU referendum, July 2016-January 2020
Prices are the biggest concern…
Figure 3: Consumer views on the impact of the EU referendum, January 2020
…but people are marginally more likely to say it will benefit the economy
Figure 4: Consumer views on the impact of the EU referendum on the UK’s economic growth, by gender and age, January 2020
Consumers find personal repercussions more difficult to predict
CURRENT FINANCIAL SITUATION
What you need to know
A comfortable start to the year…
Figure 5: “How would you generally describe your financial situation at the moment?”, January 2020
…as financial well-being approaches record highs
Figure 6: The financial well-being index, January 2015-January 2020
Uneven fortunes
Figure 7: Current financial situation, by area, January 2020
CHANGES IN FINANCIAL SITUATION
What you need to know
More people are on the up, financially, than worse off
Figure 8: “How would you describe your finances compared to a year ago?”, January 2020
Sentiment has been high for almost a year
Figure 9: Changes in household finances, January 2015-January 2020
Opportunities for pay rises disproportionately benefit younger workers
Figure 10: Changes in financial situation, by age, January 2020
FINANCIAL CONFIDENCE
What you need to know
Confidence rebounded at the end of the year…
Figure 11: The financial confidence index, January 2015-January 2020
…and neared record highs as the UK enters the Brexit transition period
Figure 12: “And how do you feel about your financial situation over the next year?”, January 2020
Brexit has a major bearing on confidence
Figure 13: Consumer confidence for the coming year, by consumer views on the impact of the EU referendum on the EU economy, January 2020
PLANNED FINANCIAL AND SPENDING ACTIVITY
What you need to know
A stable Christmas for financial activity
Figure 14: The financial activity index, January 2015-January 2020
Looking forward to a break
Figure 15: “Thinking about how you spend your money, which of the following have you done over the last three months? And which do you plan to do over the next three months?”, January 2020