The first three months of 2021 saw a record quarterly rise in consumer confidence, increasing six percentage points in the first quarter, to -11%, according to the latest Deloitte Consumer Tracker. Every measure of confidence saw both year-on-year and quarter-on-quarter growth, as consumers journeyed out of lockdown with a spring in their step.
After entering the year under the tightest of lockdown restrictions, the reopening of schools helped boost sentiment around children’s education and welfare to -11%, up six percentage points on the previous quarter. Coupled with the continued speed of the UK’s vaccination programme, sentiment around health and wellbeing improved eight percentage points, to -26%, the highest level since the start of the pandemic.
With restaurants and physical non-essential retail remaining closed in the first quarter of 2021, consumers’ pockets improved this quarter. Household disposable income saw a seven percentage point boost to -10%; marking a 17 percentage point improvement compared to the same period last year. Further, consumers’ confidence in their level of debt has tipped over to the black, at 1%, for the first time in ten years.
Ian Stewart, chief economist at Deloitte, commented: “The UK is primed for a sharp snap back in consumer activity. High levels of saving, the successful vaccination rollout and the easing of the lockdown set the stage for a surge in spending over the coming months.”
