Confidence in job security and economic stability has hit the lowest levels since measurements began in 2011, according to new data released by Deloitte.
Deloitte's quarterly Consumer Tracker report has been giving the local business sector a rating of consumer confidence since 2011, examining six key factors of everyday life: Job security, household disposable income, debt, education and welfare, and general health and wellbeing.
This quarter's report covers the first three months of 2020 and is the first since the COVID-19 outbreak hit the UK. The results show consumer confidence at its lowest levels since the tracker began, falling by to -18%. While confidence in general health and wellbeing were obviously impacted heavily by the COVID-19 outbreak, the largest quarterly drop was actually in confidence in job security.
Around 35% of those surveyed reported that they'd lost money due to holiday or event cancellation, and spending on new holidays has obviously dried up since the national lockdown began. Consumer confidence in the economy fell by 43% compared to the last quarter of 2019, and is expected to diminish further throughout 2020.
Deloitte Chief Economist Ian Stewart commented on the stark figures: "Worries about job security and the state of the economy have generated a sharp downturn in consumer confidence. With the peak of the virus outbreak not yet reached, consumers enter the second quarter of the year expecting things to get worse before they get better."
Ben Perkins, Head of Consumer Research, similarly noted that "Consumer optimism over personal finances at the very start of the year has shifted significantly, reflected in lower confidence over job security and levels of disposable incomes this quarter. As expected, consumers are now prioritising essential purchases, increasing the amount they spend on food and groceries, particularly online."
Source: Written based on press release
