Consumers slash spending on dining and takeaways

Nearly 60% of people would save a £5,000 windfall or use it to pay off debt.

Eating or drinking out (33%), takeaways (27%), and clothing (25%) are the areas where consumers are most likely to cut back, according to RSM UK’s recent research.

RSM’s quarterly Consumer Outlook survey found that if given a £5,000 windfall this week, nearly 60% of respondents would either save it (38%) or use it to pay down debt (19%), whilst just 8% would spend it on Christmas shopping—a further setback for retailers.

Looking ahead, 57% of consumers expect to either increase their savings or maintain their current savings levels over the next three months.

Household saving ratios remain near some of the highest levels seen since the pandemic, suggesting limited short-term growth in consumer spending.

More than a third (37%) said the budget will lead them to spend less, and almost half (46%) expressed concerns about job security over the next six months.

“Households are battening down the hatches on spending…. any income that would have been considered disposable is being used to either save or lessen any existing liabilities,” said Jacqui Baker, head of consumer markets at RSM UK.

“This is the latest blow to the retail and hospitality industries during their biggest trading period of the year,” Baker added.