NEWS19 August 2019

Brexit dampens spending for a third of public

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UK – Almost a third ( 30%) of the UK public have changed their spending habits because of Brexit uncertainty, according to research from KPMG.

Brexit lost star_crop

In the survey conducted by Opinium, 22% of respondents said they were avoiding making big purchases due to Brexit.

Almost one in ten ( 9%) claimed to be halting spend on overseas holidays, while 6% said they had avoided investing in stocks and shares and 8% said they had put more money into their savings.

Younger people are most affected, with almost half ( 46%) of respondents aged 18 to 34 delaying large purchases or saving more, while those aged 55 and over are the least fazed, with only 19% changing their spending habits.

Male respondents are also more cautious, found the research, with 35% saying they have changed their money management, compared to 25% of women surveyed.

Reluctance to spend because of Brexit uncertainty is higher in London, according to the research, which found that almost half ( 48%) have postponed a big purchase or added to their savings. The proportion of respondents in the capital who claim to be avoiding investing in stocks and shares is also higher than the rest of the country – 17%.

Paula Smith, head of banking at KPMG UK said: “It is clear people are uncertain about the future, spending and investing less while saving more. However, whilst people work to protect their finances from Brexit uncertainties, interest rates remain stubbornly low so savings aren’t really working for people. The business world has been cautious about investing for growth since the referendum and that’s clearly playing through into the real economy and people’s financial confidence.”

The survey was conducted by Opinium among 2,000 adults from 19-22nd July 2019.