Sentiment regarding the UK economy is mixed as Brexit looms

04/12/2018
UK Grassroots

Summary

Interviews with consumers in the UK revealed that 25% believe the current economy is stable, similar to the December 2017 Grassroots® survey, while 28% said it is improving slightly or significantly, a 3% increase vs. December.

Interviews with consumers in the UK revealed that 25% believe the current economy is stable, similar to the December 2017 Grassroots® survey, while 28% said it is improving slightly or significantly, a 3% increase vs. December. In addition, 28% are more optimistic about the economy currently vs. six months ago compared to 27% in December. Looking ahead, similar to December, 21% of sources believe the economy will remain stable in the next six months, while 33% believe it will deteriorate slightly (vs. 35% in December), and 24% believe it will improve slightly.

Meanwhile, 28% of sources said their current household financial situation is improving slightly or significantly, a 7% increase vs. December. Looking ahead, 55% cited concern regarding their employment status in the next six months vs. 56% in December. In addition, 16% of sources cited significant concern regarding the potential negative impact of volatility in the stock market on their financial situation in the next six months, a 4% increase vs. December.

As to Brexit, 49% of sources believe it will cause the economy to deteriorate slightly or significantly in the long term, a 4% increase vs. December. In addition, 40% believe Brexit will have a negative impact on their household financial situation vs. 39% in December. When asked about savings plans, 32% of sources said they plan to save slightly or significantly more due to Brexit vs. 30% in December.

 

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What the drop in Turkey’s lira means for consumer spending

Oleksandr Pidlubnyy | 07/12/2018
Turkey: strong macroeconomic response required

Summary

A new survey provides insight into how Turkey’s economic struggles are affecting consumers in this G20 nation. The volatility of the lira and an overall sense of financial insecurity have caused a notable pullback in consumer confidence and spending – a significant development, since Turkey’s economy is traditionally a domestically driven one.

Key takeaways

  • Although Turkey’s economic growth was recently on par with China and India’s, the value of Turkey’s currency – and its consumer confidence – has plunged
  • According to our new research, approximately 3/4 of Turkey’s consumers plan to spend less on homes, vacations and cars – and even more are worried about inflation’s effect on food and petrol prices
  • More than 60% said their optimism about the country’s economy decreased in the previous six months, and more than half believed the economy would deteriorate further in the next six months
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