Both consumer sentiment and the level of reported financial hardship improved in December as the lockdown came to an end and news of viable vaccines emerged. 42% of consumers say they are somewhat optimistic about the future (+ 8 pp) and 50% of households now report a negative financial impact (-2 pp).
Despite being hit hardest, younger generations report being more optimistic about the future. 57% of Gen Z consumers and 46% of Millennials are at least somewhat optimistic, compared to 37% of Gen X and 34% of Baby Boomers.
31% of households are planning to spend money on festive gifts, but 42% plan to spend less this year than last year.
Though half of all households still report financial impact, 24%of households say they are actually faring better than planned in 2020 with a further 37% say their finances are going as planned. Only 9% of consumers indicate they are much worse off financially than planned compared to the start of the year.