UK consumer confidence bouncing back

Confidence among UK shoppers has bounced back to a four-year high in the third quarter of 2015, according to professional services firm Deloitte.

The business advisory firm’s quarterly Consumer Tracker, which surveys 3,000 UK consumers, shows overall consumer confidence climbed by 2 percent during the period. All six measures of the Consumer Tracker reporting increases from the previous quarter, with the biggest gains seen in relation to consumers’ level of debt, job opportunities and career progression.

Those living in London and the South East also recorded a resurgence in consumer confidence, following a fall in the previous quarter amid concerns about the weakness of the property market and the affordability of housing.

Deloitte now believes that consumers will spend more on “discretionary categories,” such as clothing and footwear, in the fourth quarter of 2015 as a result.

Ben Perkins, head of consumer business research, said: “Lower inflation in key categories such as food, utilities, transport and other essentials has reduced the pressure on consumers’ budgets.

“The outlook is positive for the rest of the year. Consumers are planning to increase their spending on discretionary items in the fourth quarter of 2015. The leisure sector in particularly has profited from the falling cost of many essentials, as consumers are choosing to eat and go out.”

Perkins added: “UK consumer businesses should be buoyed by the news that defensive behaviour has fallen to its lowest level since our survey began.”