Quarter of British consumers expects to be richer this time next year

A quarter of consumers expect to see a rise in their wealth in 2017, compared to 21 per cent who thought so last year

Many consumers cited the chance of pay increases as the reason for their optimism (Getty)

One in four British consumers expects to be better off this year than they were last, despite lingering uncertainty around the rising pound and how the UK’s exit from the European Union might affect the domestic economy.

Responses to a survey conducted by professional services firm PwC and published on Wednesday show that a quarter of consumers expected to see a rise in their wealth in 2017.

That’s marginally higher than the 21 per cent and 22 per cent who anticipated being better off over the following 12 months in 2016 and 2015, respectively.

“Our survey results reflect the fact that many consumers’ personal circumstances have been improving in the past year, with falling unemployment and the national living wage being reflected in many people’s pay packets,” Kien Tan, a director at PwC, said.

Mr Tan said that 34 per cent of respondents who were upbeat about their personal wealth cited the chance of pay increases as the reason for their optimism. Half of those who expected to be worse off in 2017, however, said that their gloomy outlook was down to the state of the economy.

Of the around 2,000 consumer questioned by PwC, 45-54 and 55-64 year old age groups were the most pessimistic with 31 per cent and 34 per cent expecting to be worse off next year respectively. Mr Tan says that this marks a shift: in previous surveys those aged 65 and above proved the most downbeat about the future.

He says that there has also been a discernible deterioration in sentiment among those aged 35-44.

“These ‘pressured families’ are least likely to have benefited from wage and pension increases, and most likely to have been affected by inflation on fuel and holidays.”

On Tuesday, the UK’s Office for National Statistics (ONS) said that inflation had unexpectedly jumped to 1.6 per cent in December, a clear sign that the slump in the pound is now feeding into domestic prices.

Most economists - including those at the Bank of England and the Office for Budget Responsibility - expect higher inflation to reduce consumer spending this year and next, slowing the economy.