Earlier this year, the Consumer Confidence Survey released by measurement company Nielsen and the British Retail Consortium suggested that one third of Britons believe they have "no spare cash". Figures provided by Nielsen show that the squeeze on disposable incomes is getting tighter. 65% of consumers say they are switching to a cheaper grocery brand to stay within these tight budgets. Large discounts and promotions in the grocery sector is helping take the edge off inflation, though figures show that confidence is still low. Globally, this measure of consumer confidence hit its lowest point since 2009, the peak of the recession, six quarters previous to the study.

According to the Nielsen study, increases in water, gas and electric rates putting consumers in fuel poverty is the biggest concern. 26% of consumers told the study that increasing utility bills were a concern for them. According to uSwitch.com, 89% of households will be rationing their energy use this Winter. For helpful information on saving money on fuel costs this winter go to (an article i have decided I'm going to write next!).

The study also revealed that increases in food prices are high on consumer's list of worries for the future. 20% of the study group mentioned rising food prices as a main or secondary concern. The same study asked "Compared to this time last year, which of the following actions would you take in order to stay within your budget?" 65% of everyone asked answered that switching to a cheaper grocery band was their strategy. This strategy was touted as one of the best cost-saving measures during the peak of the recession in 2009 - A similar number of consumers are employing this strategy in 2011.

Finally, the study asked the simple question "How much spare cash do you have?" A whopping 32% of all consumers asked claim that they have no spare cash. A record high, compared with the peak recession quarter in 2009 with a result of 21%.

With Winter fuel coming at a premium in 2011 and consumer confidence falling, attitudes towards money are becoming more frugal. For great tips on keeping costs low and not sacrificing your quality of life, stay tuned for more articles. 

About the Author

Rachel Barker

Rachel Barker, an accountant who switched to online banking four years ago and has never looked back.