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Highlights:
- Two out of three consumers in the country have said they are thinking of slashing expenses that are not essential in 2023.
- One in four said their expenses would stay the same as this year.
With the rising inflation and growing problems due to the cost of living crisis, Brits are opting for measures to save money, including cutting down on expenses.
As per a study by KPMG, two out of three consumers in the country have said that they are thinking of slashing expenses that are not essential in 2023 due to the cost of living crisis. The study also highlighted that about 10% of the consumers were worried about their energy bills after April when the government's support to keep energy bills in check stops.
Brits were also concerned about the fixed-term mortgage deals coming ending and variable mortgage deals rising. Lenders have been raising mortgage deals for a few months with the increase in interest rates. The Bank of England has been hiking the rates for a year to keep the prices in check.
Image source: Andrey_Popov, Shutterstock.com
According to KPMG, families are cutting spending as the prices for essentials, like food, energy, fuel, mortgage, etc., have been rising to record levels. There are concerns over how they will move in the coming months as recession fears continue to loom.
Just 4% of the consumers were hopeful of raising their non-essential spending next year. One in four said their expenses would stay the same as this year.
About 28% of the consumers also said they would switch to less expensive retailers next year. A third said they prefer buying their brand and value goods, while 30% said they'd buy lesser items.
Let's explore some stocks in the wake of this information.
Audioboom Group PLC (LON:BOOM)
Audioboom is a leading podcast firm that belongs to the FTSE AIM All-Share index. Holding a market cap of £72.12 million, the company has a negative EPS at present of -0.23. The stock price has depreciated more than 68% over the past year. As of 11:33 am GMT on Thursday, the stock traded at GBX 437.50, down 1.13%.
Lookers plc (LON:LOOK)
Lookers is a leading car dealership chain in the UK and a constituent of the FTSE All-Share index. With a market cap of £294.66 million and an EPS of 0.16, the company's 12-month year currently stood at 15.23% at the time of writing. The company's share price stood at GBX 76.20 as of 11:36 am GMT on Thursday.
ME Group International plc (LON:MEGP)
The FTSE All-Share listed company’s market cap presently stands at £432.87 million. It is a leading operator of vending machines. With an EPS of 0.06, the stock has given a return of 85.60% in the past year. The company's share price stood at GBX 114.50 as of 11:39 am GMT on Thursday.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
