Deloitte Consumer Tracker - Spring arrives early as consumer confidence on the up
23 April 2014
- Overall confidence is at its highest since the Tracker began over two years ago (-7% in Q1 2014 vs. -18% in Q3 2011)
- Net spending on holidays has risen significantly to -4% in Q1 2014, improving from -8% the same time last year;
- Additionally, net spending on short breaks and eating out rose five points from -17% (Q1 2013) to -12% (Q1 2014);
- Consumers intending to spend more on holidays to outnumber those planning to cut back in Q2.
Consumer confidence has climbed to its highest level in over two years, according to the latest Deloitte Consumer Tracker. All measures are up, with overall confidence 11 points higher than when the Tracker began in Q3 2011.
Consumers’ confidence in their level of disposable income increased by seven percentage points in Q1 2014 compared with the previous quarter (-20% vs. -27% in Q4 2013) - the fastest growth since the start of the Tracker. The labour market also showed signs of improving, with less people experiencing a ‘loss or reduction of income’ (12% vs. 14% in Q1 2013).
Net spending on holidays year-on-year has risen significantly to -4%, improving from -8% in Q1 2013. Similarly, net spending on short breaks and eating out rose five points from -17% (Q1 2013) to -12% (Q1 2014).
During the second quarter of 2014, consumers plan to spend more on holidays with the net spending expected to rise to +1% from -7% for the same period last year. This is the first time this specific indicator of discretionary spending has been in positive territory since the Tracker began. Consumers also anticipate their net spending on short breaks and eating out to rise over the next three months to -11%, up from -18% compared to same time last year.
Graham Pickett, head of travel, hospitality and leisure at Deloitte, said: “After the storms and flooding which affected much of the country at the start of the year, UK consumers have responded by planning their getaway holidays. Lower inflation, easier access to credit, historically low interest rates and an improving job market have all helped consumers in being more positive and bolstering their spending power. The travel sector mirrors this sentiment and has reported a very positive start to the year with increased bookings in the outbound travel market.”
Notes to editors
About The Deloitte Consumer Tracker
The Deloitte Consumer Tracker is an economic update focussed on consumer spending attitudes and behaviours. Through a quarterly survey of 3,000 adult UK consumers it monitors the patterns of consumer expenditure on a category-by-category basis and the underlying drivers of spending behaviour, notably household disposable income and consumer confidence. It also considers consumers’ spending outlook for the next quarter.
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
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