The ABI has reported that consumer confidence in the economy was hit in the last quarter of 2009, with 31% of consumers expecting the economy to worsen in 2010.
Furthermore, optimism over the economic prospects for 2010 fell significantly, as consumers became more worried over job security.
The ABI’s Savings and Protection survey for the fourth quarter of 2009 questioned 2,500 adults on their views on the economy, and how it affected their attitudes to saving and protection.
31% expect the economy to worsen in 2010, up from 22% in the third quarter. Only 39% were optimistic about the economy in 2010, down from 52% who felt the same in the previous quarter.
31% said that they were more concerned about their job security than they were three months ago, up from 27% in the previous quarter.
42% have started paying off their non-mortgage debt faster than before, up from 34% a year ago. Of those saving regularly, only 17% expect to be saving more in 2010, down from 24% who felt the same way in the previous quarter. 37% see themselves as savers 31% as spenders. Less than 20% say that they would rather get into debt than go without.
Dr Rebecca Driver, ABI director of research and chief economist, said: “Despite continued fiscal and monetary policy intervention