More Britons believe the economy is getting worse rather than better

More Britons think the economy is getting worse rather than better, new findings from KPMG suggest.

Four in ten people said they thought the economy was sick, while a quarter said it was improving, according to KPMG’s latest UK Consumer Pulse survey.

Revised data from the Office for National Statistics this month showed there was zero growth in the economy between July and September.

This week, Keir Starmer and Rachel Reeves wrote to regulators asking them to come up with ideas for reforms that could boost economic growth.

According to the Confederation of British Industry, the economy is “heading for the worst of all worlds” in 2025, amid a rise in employers’ national insurance contributions from April.

The CBI’s latest growth indicators survey found that private sector companies expect to reduce hiring, reduce production and see prices rise in the first three months of 2025.

Pessimism about the state of the economy was highest among people surveyed aged 65 and older, while those in the 25 to 34 age category were the most optimistic, KPMG said.

While many Britons feel nervous about the health of the economy, many households are entering the new year feeling more financially secure, according to KPMG research.

57 percent of about 3,000 people surveyed said they felt financially secure, while 21 percent felt insecure about their finances.

Half of those surveyed said they could spend freely, while only three percent said they couldn’t pay essential bills or were going into debt to do so.

Eighty percent of consumers said they planned to make major purchases in the next year, with vacations being the most popular option.

Linda Ellett, head of consumer, retail and leisure at KPMG UK, said: “Whether due to confidence in their ability to spend or their ability to manage household bills, it is positive news that the majority of UK households head into 2025 feeling financially secure.

‘Despite four in ten people saying the UK economy is getting worse, more than those who think it is getting better, planned spending on big-ticket items over the next twelve months looks healthy.

“Whether that spending comes to fruition will depend on a number of factors, including the continued decline in interest rates and whether perceptions of economic downturn become reality in the form of greater job insecurity.”

This week, separate data from Barclays suggested that increased consumer spending on things like shows, concerts and cinema is expected to continue to rise in 2025, while spending on essential items will decline.