// The Deloitte Consumer Tracker dips by one percentage point to -9% in the last quarter
// The analysis was based on the responses over 3000 consumers in the UK between September 27 and 30
New research has found that consumer confidence continues to fall thanks to Brexit uncertainty.
Consumer confidence has dipped by one percentage point to -9% in the last quarter, down two points year-on-year, according to The Deloitte Consumer Tracker.
The analysis was based on the responses over 3000 consumers in the UK between September 27 and 30.
Despite the decrease in consumer confidence, strong disposable income continued to drive leisure spending.
The confidence in the level of disposable income increased by one percentage point and was strongest amongst 18 to 34-year-olds, up 10 points year-on-year, following the introduction of the National Living Wage.
Leisure spending saw a year-on-year increase in nine out of 11 categories, as experiences continue to be favoured over goods.
“Up to now we have seen a slowdown everywhere but in the jobs market and in the consumer economy,” Deloitte chief economist Ian Stewart said.
“A decline in consumer confidence this quarter, combined with a fall in official unemployment figures, show that the period of remarkable resilience in jobs and earnings is coming to an end.
“With Brexit cited as the biggest risk businesses face, the last quarter has also seen heightened concern over slowing growth in the UK and Eurozone and chief financial officers are tightening their purse strings in response.
“The headwinds from a major global slowdown and uncertainty at home point to weaker growth ahead. As a result, 2020 is likely to see not only lower levels of consumer confidence but also a slowing down of consumer spending growth.”
Deloitte partner for hospitality and leisure Simon Oaten said: “Consumers enter the fourth quarter in a relatively cautious mood and maybe for good reason.
“Whilst consumers have been quite resilient since the EU referendum, a deterioration in the jobs market could see some spending contraction.”