A new survey by TNS UK reveals that most adults are not feeling the positive effects of economic recovery in their wallets. This is despite a reduction in the number of people struggling to meet their monthly household budgets and an overall feeling that the British economy is on the up.
The poll of 1,195 adults shows a marked improvement in how people see the economy doing. More people (38%) think the economy is doing better than a year ago – up 24 percentage points on June 2013. Fewer people think the British economy is doing much the same as a year ago (47% – down 11 percentage points on this time last year). Only 15% now believe the economy is worse, which is down 13% on this time last year.
This new research shows that fewer people are struggling with their household budget; the number finding it harder than a year ago has decreased (30% vs 44% a year ago). However, a majority (58%) report no change in their ability to meet the household budget, up 9 percentage points on June 2013.
Indeed, any improved confidence in the economy is not translating into improvements in people’s pay packets. Most people in work (59%) think their pay will stay the same over the next 12 months – a small change to the 56% of the same opinion in June 2013. There has been little change in the number expecting a pay rise (25% vs 24%) or those anticipating a pay cut (6% vs 10%). This data shows that there has been no real change in perception over the past twelve months.
In addition, a majority of those who are not in work (56%) believe their income is likely to stay the same, with one in five (19%) anticipating an increase and 16% expecting their income to go down. This varies by region with the number of those expecting their income to stay the same highest in the North East, Yorkshire and the Humber (71%) compared with 43% in the East and West Midlands.
Commenting, Dr Michelle Harrison, CEO of Kantar Public said, “While the mood is improving many still feel that they are not yet benefiting from the improvement in the economy; or think they will soon.”
Notes to editors
TNS Omnibus interviewed a representative sample of 1,195 adults in Great Britain between 10 and 12 June 2014. All interviews were conducted as online self-completion. The data is weighted to match population totals for age, sex, social grade, working status, presence of children, 2010 voting.
Detailed tables for this survey can be found here.
About TNS UK
TNS UK advises clients on specific growth strategies around new market entry, innovation, brand switching and stakeholder management, based on long-established expertise and market-leading solutions. With a presence in over 80 countries, TNS has more conversations with the world’s consumers than anyone else and understands individual human behaviours and attitudes across every cultural, economic and political region of the world. TNS is part of Kantar, one of the world’s largest insight, information and consultancy groups. Please visit www.tnsglobal.com/uk for more information.