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Find free, independent and practical advice about caring for older people across the UK
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Optimism about the economy has increased - 36% of people now expect the economy to improve in the next 12 months. People are feeling more positive about prices and unemployment too. Compared to a year ago, fewer people expect prices to increase a lot in the next 12 months and fewer people expect unemployment to increase.
The proportion of people who expect their finances to improve is the same as 12 months age - 25%. However, the proportion of consumers expecting their finances to get worse in the next year has fallen considerably – now standing at 22%, down from 33%.
How many people are cutting back spending on essentials?
Consumers are less likely to say they will be cutting back on holiday spending than in 2013. In July 2013, 53% of consumers said they intended to cut back their spending on holidays in the coming months, this month that figure is 38% - down 15% points.
Households with dependent children are much more likely to be planning to cut back on holiday spending - 47% of this group intend on cutting back on holiday spending compared to 35% of households without children.
Consumer spending has increased in the last year. ONS Consumer Trends data show an increased volume of purchases, especially non-essential items including recreation and transport, in each quarter since the start of 2013.
At the same time the Which? Consumer Insight Tracker shows fewer consumers cutting back their spending. In particular fewer consumers are cutting back their spending on transport, holidays and entertainment.
However, while consumers overall feel more confident to spend, one in four still say they cut back on essential spending last month.