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15 July 2022
Consumers and business prepare for recession
Money & financeMarketing in a recessionUnited Kingdom
YouGov tracking data shows that the UK economy is at the top of the list of people’s concerns, while the Financial Times reports companies are “war gaming” for a recession.
Why it matters
The political world, which one might hope would have a response to this, is consumed by a party leadership election where the economy gets a walk-on role in the form of candidates’ plans for tax cuts.
But in the real world, people are worried about what may be coming down the line in a few weeks at the end of summer, when they’re faced with rising expenses for everything from energy and fuel to food and school uniforms. Already there are reports of people capping their expenditure in supermarkets, telling cashiers to stop when the total cost reaches a certain point.
Seven in 10 Britons (69%) now see the economy as one of the top three most important issues facing the UK – the highest level in almost a decade, says YouGov.
Concern about the economy is highest among Britons aged 50-64 (77%) – they have experienced this before – and lowest among 18 to 24-year-olds (58%).
Retail sales are falling at an annual rate of 1% (not adjusted for inflation), according to the latest figures from the British Retail Consortium.
Sectors reliant on discretionary spending, such as travel and leisure, are bracing themselves. Media and marketing groups can also expect to see a cut in spending.
“People have to plan for a tough 2023. You have to be focused now on growth and where you can find it geographically and technologically in the next two years” – Sir Martin Sorrell, executive chairman, S4 Capital.