Plan British consumers to cut back on restaurant meals and unnecessary shopping in 2023after the cost of living rises according to disposable income.
Consulting firm KPMG said that nearly two-thirds of the 3,000 people surveyed by the company said they needed to cut spending and save more because inflation hit a four-decade high.
The study found that consumers pay more for essentials such as food, mortgages and energy bills.
Eating out, takeaway meals and new clothes were the things consumers said they would do without first, indicating weaker demand for retailers and hospitality companies in 2023.
A third of the people polled in the study stated that they would buy fewer than their needs, and choose more goods with lesser brands, according to Bloomberg, and Al Arabiya.net viewed it.
In turn, Linda Ellett, Head of UK Consumer Markets, Retail and Leisure at KPMG, said: “Consumers are increasingly changing the way they shop to save money, including by switching to cheaper retailers, buying promotional products, and replacing eating out with home-cooked meals.”
And KPMG found that nearly half of those surveyed pull out savings to help them meet basic costs. This percentage rises to 80% among low-income families.
One in 10 consumers surveyed had no savings, and people in London had the lowest average savings, at £4,725 ($5,700).