UK in midst of 'psychological recession', according to Generation Recession report
The UK is in the midst of a ‘psychological recession’, with a disparity between consumers’ perceived impact of the recession and its actual effect on their day-to-day lives perpetuating the problem, according to a Generation Recession report commissioned by Friends Provident.
A Datamonitor Financial Services Consumer Insight survey reflects the findings of the report, with 90 per cent of UK consumers thinking their country is in recession, while 53 per cent think their household financial situation has improved or remained the same.
The Generation Recession report also shows that twice as many people feel their job is safe compare to those who have actually lost or fear they will lose their jobs.
Datamonitor’s findings showed that 52 per cent of consumers globally feel confidence in their job security is the same compared to a year ago, with only 34 per cent believing it has worsened. Fourteen per cent of consumers indicated improved confidence in their job security.
“The communication of positive messages through the government, the media and the banking industry is what is needed to facilitate a psychological shift and confidence boost among consumers, bringing about a ‘psychological recovery’,” Datamonitor retail banking analyst Anna Large said.
The recession has, however, seen the younger generation take the opportunity to become more financially literate, according to Large.
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