3 in 4 Brits lack confidence in full UK recovery from economic damage caused by Covid-19
A new nationally representative study of 2,000 UK adults reveals Britons’ wavering confidence in the national economy and their personal finances for the remainder of 2021:
- 74% lack confidence that consumer spending will return to pre-pandemic levels
- 3 in 4 uncertain that the UK economy will fully recover following the pandemic
- 4 in 5 not confident that the government will be able to prevent another lockdown
- Only 40% think that another lockdown would not impact their personal finances
- Just 50% think they will be able to afford their basic living costs for 2021
- 85% believe all Brits have a responsibility to take steps to support the economy
Despite some recent forecasts of economic growth¹, a new study reveals that 74% of Brits lack confidence that the UK economy will fully recover from the damage caused by the pandemic.
The new study from financial comparison site NerdWallet also found that the same percentage of UK adults are not ‘reasonably confident’ that consumer spending will return to where it was in 2019.
Looking ahead at potential roadblocks for the UK economy, just 1 in 5 also feel ‘reasonably confident’ that the government can prevent another lockdown this year.
However, Brits are a little more optimistic about their own future spending, with 42% planning to increase their spending from current levels by the close of the year. A further 43% plan to continue spending at current levels, with UK consumer spending having already exceeded pre-pandemic levels following the initial lockdown easing in April’².
Despite this, the study reveals that most lack confidence in their own financial security following the pandemic. Only half of respondents believe that they will be able to afford their basic living costs and 54% are not reasonably confident of a regular income stream until at least the close of the year. Just 40% are confident that another lockdown wouldn’t strain their finances.
When it comes to social responsibility, 85% believe that they and all UK adults should take individual steps to help support the economic recovery as we exit lockdown.
This includes wearing face masks (57%), going on holiday in the UK rather than abroad (44%), shopping at local businesses (40%) and spending at local pubs and restaurants (39%). However, only a third (29%) believe that Britons have a responsibility to shop at businesses they know have been hardest hit by the pandemic.
Around 1 in 5 people said that they feel more financially literate (17%) since the pandemic or that their experience of lockdown had taught them how to better manage their finances (19%).
NerdWallet’s Senior Personal Finance Expert, Denise Ko Genovese, comments: “Our research suggests that people are not convinced about the economy’s quick recovery, perhaps reflecting a lack of confidence that things will soon ‘get back to normal’. However, it is encouraging that a significant number feel some kind of responsibility to support the economy, and local businesses in particular. With 42% of people planning to increase their spending once restrictions are lifted, this will hopefully help those individuals and businesses that have struggled to adapt to the ever-changing guidance during the pandemic to get back on their feet.”