The latest figures from the quarterly Consumer Pulse survey of 3000 people across UK regions (297 in Scotland) shine a light on consumer behaviour and sentiment with nearly half of 2024 gone, and as the country heads into the final weeks before the general election.

A total of 69% said their biggest cut in non-essential spending was on eating out, followed by 56% on clothing and 58% on takeaways.

Half of Scottish consumers are still spending at 2023 levels, but four in ten said they had cut non-essential spend so far this year, with 69% saying their biggest cut was on eating out, followed by 56% on clothing and 58% on takeaways.

The figures also showed, on average, consumers were spending just over £80 less on non-essentials compared to the start of the year.

This has resulted in a rise in people buying more promotional or discounted items (31%), buying own brand items (29%) and making use of retailer loyalty schemes (28%).

Only 6% of consumers said they had increased non-essential spending in 2024, upping their spend on were on travel and holidays (33%) and food and drink shopping (39%).

Linda Ellett

Linda Ellett, UK head of consumer, retail and leisure for KPMG, said: “Our research clearly indicates that many households have had to continue to find ways to cut non-essential spend so far this year, with some making sizeable cuts as they adapt to or prepare for significant cost hikes, such as a remortgage or rent increase.

“Slowing inflation does not mean that consumers are seeing a reduction in prices and costs, and the overall squeeze on many monthly budgets continues.

“Consumers are cutting back spend through seeking out cheaper brands or promotional offers, buying fewer items, and by restricting the everyday treats such as eating out.”

The top five big ticket purchases so far in 2024 are:

• Holiday – 27%
• Home improvements – 11%
• Personal tech – 11%
• Home appliances – 9%
• Petrol or diesel vehicle – 9%

It was also revealed that only 20% of people are having to dip into their savings to bolster their spending, 71% are not, and 9% said they have no savings at all.

The survey showed that people with savings plan on using them on holidays, home improvements and paying essential costs during the second half of the year.

Ms Ellett added: “As we head toward the election, many households are still adapting to higher costs, consumer confidence and feeling of financial security are clearly divided, and there remains limited appetite to make major purchases. This is the landscape facing the next government as they develop their future economic policy.”