Consumer spending rises while the sun shines
UK consumer confidence grew by 4 per cent in Q2 2018, the highest level recorded by the Deloitte Consumer Tracker since it started in Q3 2011. Growth in optimism has been driven by a year-long surge in confidence around disposable income, level of personal debt and job opportunities, according to the Tracker. the quarterly survey of more than 3000 consumers took place between 15th and 18th June.
The growth in consumer confidence comes despite an environment of challenging conditions for consumer businesses, particularly for high street retailers and casual dining operators. This combined with broader macro-economic concerns, has created a divergence in confidence between consumers and business leaders.
Ian Stewart, chief economist at Deloitte said: " Consumer confidence has rallied against a backdrop of favourable economic fundamentals. UK consumers are increasingly confident about opportunities in the jobs market and the security of work. With the unemployment at at a 43-year low and skills shortages on the rise the stage looks set for gains in real wages.
"While consumer confidence is on the rise the mood in business is more cautious, reflecting the slowdown in UK growth and Brexit uncertainties."