UK consumer confidence rose in the three months to the end of July, driven by positive signals about the UK economy.
This coincided with a prolonged period of hot weather and British sporting success which is likely to have affected people’s mood. However concerns about personal finances and job security remain widespread.
These are the key findings of the third edition of The Consumer Today, the quarterly report from dunnhumby and Tesco, using their unique insights to provide a detailed picture of how British consumers feel about the economy in general, as well as their own personal situation.
Covering the three months to the end of July, the report finds that overall consumer confidence has reached its highest ever point since the survey began in July 2010.
Much of the improvement has been driven by more optimistic attitudes towards the country’s economy, with positive economic news leading to a marked drop in the number of people who feel the economy has declined in the recent past, and an increase in those believing it will improve in the future.
The good weather and British sporting success is also likely to have helped consumers to feel more positive about their present situation, contributing to the rise in overall confidence.
However, the report also signals a note of caution. Despite positive recent signals, a greater proportion of the population still believe that the economic outlook is gloomy rather than hopeful. Concerns about personal finances and job security remain widespread, and are particularly acute amongst lower income households.
Simon Hay, CEO of dunnhumby, said, “This is the third of our quarterly reports measuring consumer sentiment and overall confidence is continuing on an upward trend since the last quarter. Encouraging economic signs have boosted the positive mood, but this has not translated to people’s personal financial situations, where there is still much uncertainty.”
Philip Clarke, CEO of Tesco, said, “It’s been a great British summer of sun and sporting success and it’s encouraging to see that consumers are feeling more positive about the economy.
"However, the underlying picture is complex and it’s not yet clear if the recent improvements in consumer confidence are thanks to these short-term factors, or part of a more significant shift. What we do know is that consumers are continuing to look for great value and I don’t see that changing.”