UK consumer confidence rose slightly during the second quarter of the year following record declines at the start of 2020, according to new analysis.
The latest Deloitte Consumer Tracker of 3,000 UK consumers found that there was an intention amongst many to start spending again, despite caution in regards to the state of the economy, job security and career progression.
Quarter-on-quarter confidence around levels of debt rose five percentage points, to -1%, with household disposable income sentiment seeing an 11 percentage point rise, returning to the same level as this time last year. However, with year-on-year job security, and career progression sentiment down 13 points (to -20%) and 21 points (to -22%), respectively, caution remains.
Scottish consumers were more pessimistic about the economy, but respondents north of the border had more confidence when it came to job security, disposable income and general health and wellbeing.
The impact of COVID-19 on the economy also came into sharp focus, with consumer sentiment on its state seeing the most notable decline. Having started the year with record low unemployment rates, a separate Deloitte survey shows that 90% of CFOs now expect a reduction in hiring over the next 12 months.
Ian Stewart, chief economist at Deloitte, commented: “Following a huge contraction in March and April, activity is seeing a post-lockdown bounce. However, with confidence about the economy at record lows and high levels of concern about jobs and health, consumer spending is unlikely to return to pre-pandemic levels until next year at best.”
