BUSINESS IN
CONSUMER CONFIDENCE
Consumer confidence falls second consecutive quarter The latest Deloitte Consumer Tracker shows the fall in sentiment among consumers is in stark contrast to business executives.
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onsumer confidence fell by one percentage point in the fourth quarter of 2021, reaching -11%, as consumers started to feel the squeeze of inflation and pockets were hit with higher household bills. The latest Deloitte Consumer Tracker show personal expenditure increased for 41% consumers in the final quarter of 2021, up from 36% in Q3. Of these, 74% revealed it was due to rising prices. Céline Fenech, Consumer Insights Lead at Deloitte, said: “With the expected
squeeze on spending power and higher quarter-on-quarter decline, falling eight inflation, another fall in confidence may percentage points. However, the fall in dent the hopes of a consumer recovery. sentiment among consumers is in stark However, some consumers are still in contrast to business executives who the fortunate position of having higher intend to make increased capital investlevels of savings compared to before the ment a strong priority for the year ahead. pandemic, indicating some financial Ian Stewart, Chief Economist at resilience.” Deloitte, said: “Sharply higher inflation Of the Consumer Tracker’s and a squeeze on consumer spending power has hit consumer seven measures of confidence, sentiment around confidence. With inflation Consumer sentiment around the state of the economy set to rise further, a tough the state of the econrecorded the largest few months are in prosomy recorded the largpect. However, high savest quarter-on-quarter ings, strong consumer decline, falling eight percentage points. balance sheets and rising employment should help soften the blow to spending This is in caused by higher inflation.” stark contrast to The research shows sentiment business executives who say they intend to around job security and career make increased capital opportunities and progression investment a strong are both up, by two and one perpriority for the centage points, respectively. year ahead. Stewart continued: “A strong recovery in activity as lockdown restrictions eased has ensured most furloughed workers have been able to return to the workforce. At the same time, the ratio of unemployed people to vacancies sits at a record low meaning, theoretically at least, there is a job available for almost every person out of work.”
24 I SLRMAG.CO.UK / ISSUE 91 / WEDNESDAY 9TH FEBRUARY 2022
