Households paying off debt
Households were asked how they would spend a windfall equivalent to one month’s income – 84% said they would save it or pay off debts while only 16% said they would spend it.
The proportion of households reporting that they had less cash to spend fell to 29% in October, down from 43% in March 2011.
But while the pressure on income appears to be easing, UK consumers are stuck in a deleveraging mind-set.
Dominic White, ASR chief european economist, said: “YouGov’s survey highlights that many people are planning to cut their discretionary or ‘fun’ spending. Even if they were to receive a windfall, few would choose to spend it now.”
He added: “However the overall economic picture for UK households continues to be gloomy. YouGov’s Household Economic Activity Tracker fell in October as fears about job security intensified.”
The index remained below 100, indicating that a majority of households said their economic situation is getting worse.