Personal Finance

Thrifty Brits are reigning in their spending on new tech

By Oliver Smith 28 July 2016
Apple Stores are going to suffer as we reign in our spending.
Summary

Will you be buying a new iPhone this year? Probably not now.

TVs, smartphones, going to the cinema and eating out are all things we’re not going to be spending money on next year.

Yes, those big technology purchases and leisure activities are expected to be the biggest losers over the next 12 months as people tighten their purse strings post-Brexit.

That’s according to PwC which surveyed 2,000 Brits on their spending habits and found that most of us now expect to be worse off next year.

The big change of course, has been the outcome of the recent referendum which has led people to re-think their budgets, with Scots being the most pessimistic about their future finances.

The finding could have a big knock-on impact on the sales of Apple’s new iPhone later this year, as well as upcoming blockbuster movies like Rogue One: A Star Wars Story this Christmas.

It’s not all doom and gloom however. Our spending on groceries and holidays will rise, possibly as millions of Brits decide to escape the Brexit blues with a trip abroad in the next year.

“Holidays continue to be a key non-negotiable for many, in spite of additional costs caused by Sterling’s devaluation,” said PwC director Kien Tan.

Overall the hit to our spending confidence is scary, but nowhere near as bad as it was in 2009 after the financial crisis as seen in the chart below:

“It’s clear from this that consumers do not expect anything like a repeat of the 2009 recession,” added Lisa Hooker, a partner at PwC.

So a thrifty year ahead, with fewer iPhones and trips to the cinema, but not a disaster.