(Alliance News) - Consumer confidence in the UK decreased in the third quarter, returning to a level last seen in the final quarter of 2018, according to the latest Deloitte Consumer Tracker survey released Monday.
UK consumer confidence fell by one percentage point to 9% in the third quarter of 2019. The analysis, based on the response of more than 3,000 consumers in the UK between September 27 and 30, revealed sentiment on job security was three points lower year-on-year at 8%.
At the same time, confidence around job opportunities and career progression also fell by five points to 6% over the same period. According to Deloitte's latest survey, businesses are intensifying cost control, with 70% of employers expecting to reduce hiring in the next 12 months.
"Up to now we have seen a slowdown everywhere but in the jobs market and in the consumer economy. 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," said Ian Stewart, chief economist at Deloitte.
"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," explained Stewart.
Deloitte's latest survey showed that consumer spending was most notable in the leisure sector in the third quarter of 2019, as consumers continue to favour experiences over material goods, such as shoes and clothing.
This trend was seen across both small- and big-ticket leisure categories, from gym and sports to eating out, in-home leisure, and culture and entertainment.
Meanwhile, confidence in disposable income was one point higher, at 19%, compared to a year ago, but the greatest jump was amongst 18 to 34-year-olds, up ten percentage points, boosted by the introduction of April's National Living Wage, Deloitte said.
"Spending on short breaks and long holidays has remained flat compared to the second quarter, despite the seasonality of travel," noted Simon Oaten, partner for hospitality & leisure at Deloitte.
Looking ahead, 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."
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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