Consumer confidence improves marginally in second quarter

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UK consumers emerged from the second quarter of the year in a cautious but slightly more positive mood, following a record decline in consumer confidence in the first quarter of the year, new research reveals.

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The latest Deloitte Consumer Tracker shows that despite significant caution on the state of the economy and continued concerns about job security and career progression, consumers intend to start spending again in the quarter ahead, albeit below last year’s levels.

Deloitte’s analysis, based on responses of more than 3,000 UK consumers between 19 and 23 June 2020, reveals that essential spending over lockdown was largely confined to grocery and utility bill categories, with quarter-on-quarter net discretionary spending down almost across the board.

Ben Perkins, head of consumer research, said: “Whilst recovery on the high street is unlikely to be immediate, consumers are primed to spend. Shop reopening coinciding with some seasonal discounting could also draw more shoppers back and tap into the pent up demand.

“While online sales reached record highs over lockdown, it remains to be seen if this trend will continue, prompting many retailers to revisit and innovate their online store experience.”

The Tracker also found that, having stayed home for most of the second quarter, consumers are eager to start spending again in the leisure sector over the coming quarter. Net spending intent for the third quarter is highest in the restaurant and going out categories, up quarter-on-quarter by +65 and +60 percentage points, respectively. While 31% of consumers indicate they would visit pubs and coffee shops within a month of reopening, the figure is lower for restaurants (22%).