The latest Deloitte Consumer Tracker found with political uncertainty lifting, so too has consumer sentiment on the state of the economy, job security and personal finances. However, retail spending is expected to remain subdued until these factors gradually translate into greater sales.
Deloitte’s analysis, based on responses from more than 3,000 UK consumers between 3 and 7 January 2020, reveals feelings towards the economy grew significantly compared to the previous quarter, rising 27 percentage points.
Despite year-on-year confidence around career progression and job opportunities falling three percentage points (to -6%), job security sentiment has risen three percentage points (to -5%) on both the last quarter and compared to the same period last year.
Ben Perkins, head of consumer research, said: “While consumers appear much more optimistic about their own personal finances, this has yet to be reflected in consumer spending. Online continues to show strong growth, but retailers across the board are looking to attract new customers as well as retain their loyal base in 2020. Opportunities are likely to be found through continued investment in both online and in-store experiences.”
Simon Oaten, partner for hospitality and leisure at Deloitte, added: “An increase in spending in the eating and drinking out and culture and entertainment categories indicate that, despite tightening their belts, consumers continue to favour experiences over goods when deciding what to do with their spare cash.”