A new study of 2,000 respondents released by the UK’s leading Out of Home media and infrastructure company, Bauer Media Outdoor, formerly Clear Channel UK, revealed that despite the cost-of-living crisis, UK consumers maintain strong spending power, as 38% of Brits reported spending more of their disposable income now than in the past year.
Bauer Media Outdoor’s recent Audiences in Focus report also indicated growth in consumer confidence, with 36% of Brits reporting having less rigid budgets and treating themselves more, compared to the same period last year (20% YoY increase).
Focusing on consumer spending power, the report revealed that travel topped the list of disposable income spending for Brits, with 1 in 3 (33%) splashing out on it. Clothes (26%), home improvements (25%), entertainment (23%), and hobbies (20%) round out the top five sources of disposable income spending.
The research data shows a clear divide in how each age group uses their disposable income. Gen Z spends their disposable income on snacks (32%) and entertainment (26%), while Millennials prioritise clothes (37%) and travel (30%). Those aged 35 and over spend most of their disposable income on travel, and this preference increases with age.
Aberystwyth, Glasgow, London, Manchester, Sunderland, Newcastle, Birmingham, Chelmsford, Belfast and Portsmouth have emerged as the top 10 cities and towns with the greatest increase in disposable income spending over the past year. Contrary to the belief that big cities have a monopoly on spending power, the data shows that people from all over the UK are actively choosing to spend their disposable income.
Daily, I receive stories of people struggling with money. This obviously self-serving study (people spending more, will persuade advertisers to spend more) is irresponsible. People are not really spending more are they? Be honest!
