Has economic uncertainty made you change your spending habits?

The Middle East crisis has prompted a huge number of people to cut back on treats and luxuries.

New figures from Barclays show that economic uncertainty caused by the US-Israel war with Iran has led to two-thirds (65%) of people making financial changes.

For example, almost half of this group (45%) are limiting non-essential purchases, and a similar number (42%) are cutting back on takeaways and meals out.

What’s behind people’s changing habits?

Of those people trying to reduce discretionary spending, more than a third (35%) want to offset an increase in essential costs.

Others, meanwhile, want to be more financially resilient, with 34% saying they want to build a savings buffer.

Consumer confidence improving

Despite many people cutting non-essential spending, that doesn’t mean they’re going without completely.

For example, entertainment spending rose by 5.8% in May, after declining by -0.6% a month earlier.

Similarly, spending on digital content and subscriptions saw its highest growth in nearly five years last month.

Meanwhile, the number of people saying they’re concerned about rising energy bills fell from 85% to 83% last month.

And the proportion of consumers expressing worries about food prices fell from 84% to 82%.

Of course, the number of people concerned about these vital expenses remains huge.

But the figures suggest that while economic uncertainty is still on people’s minds, initial fears about the impact of the Middle East crisis might be easing slightly - among some at least.

“Shoppers are still being careful, with many continuing to build savings and managing subscriptions more closely,” said Karen Johnson of Barclays.

“But they are also finding room in their budgets for the things that feel good value, convenient or worth prioritising.”

Check our regular money saving tips

If you want to make sure you’re spending less, check back for regular money-saving tips and ideas.

We’re regularly updating these pages with ideas on how you can cut costs, such as:

• how to make your money go further
• how to save energy
• how to keep the cost of your food shop down
• 50 ways to cut your fuel costs

You can also find round-ups of standout deals and low-cost recipes that can help you save money in the shops and at home.

Ask for help if you need it

If you’re struggling, reach out and ask for help.
 
We can help you check that you're claiming all the benefits you're entitled to, as well as support you in creating a realistic budget that works for your circumstances.