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Published
Apr 22, 2015
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Deloitte says 2015 could be best year for UK consumer spending in a decade

Published
Apr 22, 2015

The latest Consumer Tracker from Deloitte shows that consumer confidence around household disposable income in the UK was at its highest in over three years in Q1 2015.

It was up 7 points year-on-year and 30 points higher than when the survey began in Q3 2011 (-13% in Q1 2015 vs -20% in Q1 2014 and -43% in Q3 2011).

This led Deloitte chief economist Ian Stewart to suggest that 2015 could be the best year for consumer spending since 2005. Stewart said: "With the recent return to real wages growth and further falls in unemployment, consumer finances are starting to normalise."

However, customers are worried about this year's General Election, with 40% saying they are afraid it could affect their financial situation.

The improving confidence in disposable income helped move the Deloitte Consumer Confidence Index closer to positive teritory in Q1 2015. Overall confidence was three points higher than in Q4 2014 (-5% in Q1 2015 vs. -8% in Q4 2014).

Ben Perkins, head of consumer business research, commented: "The foundations for a consumer recovery have been laid and the improvement in consumers’ financial positions looks set to continue, which should mean further rises in spending this year. Furthermore, with low interest rates, household debt interest payments as a share of income are also expected to remain low."
 

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