January 15th, 2024, Lesley Simeon
As people reluctantly step out of their holiday mood, write up their resolutions and get down to business, we look at whether they expect to make cuts to their household budgets, especially with inflationary pressures looming large in several markets across the world.
YouGov’s polling data shows that, compared to the figures reported in 2023, consumers today are less likely to cut back on their household budgets in the coming months.
For instance, our recent survey reveals that 37% of consumers expect to make small cuts to their household spending owing to rising inflation. But according to an earlier survey - conducted in November 2022 - about household spending habits in the next 12 months 41% of consumers expected to make similar cuts.
In 2024, less than two in ten consumers across markets (17%) say they expect to make large cuts to their household budgets in the next 12 months - down from 23% in 2023.
Almost a quarter of consumers (24%) say they do not have to make cuts to their household spending in 2024 - up from 19%.
This year, women are more likely than men to make cuts to their household spending. In fact, women are more likely to say they were anyway planning to bring down their household budgets, regardless of inflationary pressures.
For instance, amongst women across all the markets we survey, 18% expect to make large cuts to their household spending (down from 24% in 2023) and 38% expect to make small cuts (down from 41% in 2023). Comparatively, in 2024, 16% of men expect to make large cuts (down from 22%) and 37% expect to make small cuts (down from 41%).
But, compared to the last year, men and women are both likelier to not make any cuts to their household budget this year- 27% of men (up from 23% in 2023) and 20% of women (up from 15% in 2023) say they will not make any budgetary cutbacks.
Let’s now look at how likely or unlikely consumers are, by market, to bring down their household spending in the coming months.
Will make large cuts
Consumers in France (25%), Canada (23%) and Poland (23%) are most likely across all markets to say they will make large cuts to their household budgets this year. While the figures reported from Canada in 2022 (24%) and 2023 (23%) are more or less unchanged, those reported in France and Poland 2023 mark a decrease from the figures reported in 2022 (30% in France and 36% in Poland).
UAE has reported the steepest drop, compared to other markets, with nearly three in ten consumers here (29%) saying they intend to make large cuts to their household budgets in 2022. That figure stands thirteen points lower at 16%.
Consumers in Denmark (9%), Spain (11%), Sweden (13%) and Great Britain (14%) are least likely to make large cuts to their household budgets this year.
In Asia, Indians and Singaporeans (17% each) are most likely to make large cuts to their household spending in 2024.
Will make small cuts
As for those who say they’ll be making small cuts, Singaporeans lead (45%), followed by Italians, Spaniards and Australians (44% each). In the US, less than a third of all consumers (32%) say they will be making small cuts to their household expenditure in the coming months.
In Denmark, less than a quarter of consumers (22%) say they will make small cuts - in 2022, nearly four in ten consumers here (37%) were of the same opinion.
Will not make cuts to household budgets
Half of all consumers in Denmark (50%) say they will not be cutting back on their household expenditure this year - the most likely across all markets to say so. Notably, nearly a third of Danes (32%) had said they will not be cutting back on their household spending last year.
Consumers in France (15%) are the least likely across markets to agree.
In Asia, more than a third of consumers in Hong Kong (34% this year, up from 22% last year) say they will not make any cuts to their household spending this year, while Indonesians are least likely to agree (17%) that they will not make any cuts to their household budgets this year.
In fact, Indonesians, along with the French (18% each) account for the largest proportion of consumers across markets to say they never intended to make any cuts to their household spending in the coming months. Hong Kongers and Britons (9% each) are the least likely to agree.
As for those who don’t know whether they’ll be holding back on household spending this year, Americans lead (17%), followed closely by Indonesians (15%).
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Methodology: YouGov Surveys: Serviced provide quick survey results from nationally representative or targeted audiences in multiple markets. The data is based on surveys of adults aged 18+ years in 17 markets with sample sizes varying between 2001 and 508 for each market. All surveys were conducted online in September 2023. Data from each market uses a nationally representative sample apart from Mexico and India, which use urban representative samples, and Indonesia and Hong Kong, which use online representative samples. Learn more about YouGov Surveys: Serviced.
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