More than half of consumers in the North West have reduced their non-essential spending since the start of the year in response to rising fuel, energy and mortgage costs, according to the KPMG UK Consumer Pulse survey.
The KPMG study surveyed 3,000 consumers UK wide, including 330 people in the North West. The poll found the proportion of consumers scaling back spending in the region was in line with the national average (55%).
Utility costs were the top outgoing deterring consumers in the region from increasing their non-essential spending (40%). The study also found that one in 10 people in the region (11%) said high food and drink prices were preventing more discretionary spending.
The study revealed how the region’s consumers were most likely to be saving on eating out (63%), experiences like the cinema or theatre (52%), clothing (51%), and takeaways (51%).
Two in five North West consumers also told KPMG they are buying more own brand and value products this year – while a third are shopping at less expensive retailers.
Warren Middleton, office senior partner in the North West at KPMG UK, said: “The cost-of-living crisis continues to have a solid grip on households across the country, but it’s encouraging to see that consumers in the North West are no more acutely impacted by rising costs than elsewhere in the UK.
“There are signs that consumer confidence is growing as inflationary pressures appear past their peak. That’s encouraging for the leisure, retail and hospitality sectors, which rely on discretionary spending. But price rises on essential goods and services will continue to hold back a level of spending in the near term.”
Linda Ellett, UK Head of Consumer Markets, Retail and Leisure for KPMG UK, said: “With energy, mobile, and broadband costs set to rise for many households from April, a number of consumers will likely have to further cut back their discretionary spending.
“Already in 2023, over half of the consumers that we spoke with have reduced their non-essential spend. Buying behaviour also continues to change as shoppers look to lower costs – including switching to discounters, buying more own brand and value products, and searching out promotional prices.”
Overall feeling of financial security so far in 2023 is largely balanced among North West consumers – with 30% feeling more secure than when the year began, 29% feeling less secure, and 40% feeling the same as they did when the year began.
