Cost-of-living still ‘biggest’ concern for consumers, finds HSBC

Worries about the cost-of-living crisis have decreased amongst British consumers but it still remains their biggest concern, according to HSBC.

A new study from the bank found that 70 per cent of consumers are concerned about rising costs compared to 73 per cent last year.

The survey of over 2,000 people found that people are less likely to take on debt or move jobs due to the current economic conditions.

The research, which focussed on consumer behaviour following a period of inflation, found that customers are still price sensitive and that this is an “increasingly” important factor for them.

HSBC said that non-food retail customers are more likely to spend money with retailers that have physical presence rather than online-only brands.

The bank went on to say that increasing costs could be preventing more consumers switching to sustainable products, yet many are reusing carrier bags and consuming more plant-based meals.

In the leisure sector, HSBC found that people are prioritising travel, with 30 per cent of those surveyed saying they would spend more on holidays this year. The bank said that while eating out appears to be under pressure, entertainment is a relatively resilient area for consumer spending.

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