Deloitte Consumer Tracker Reveals Decline in Economic Sentiment
- UK consumer confidence fell for the second consecutive quarter
- Consumer Tracker’s seven measures of confidence saw a decline in sentiment around economy
- Personal expenditure increased for 41% consumers due to rising prices
- Discretionary spending expected to fall in Q1 2022, especially social categories like eating out and holidays
- Utility bill expenditure to increase by nine percentage points quarter-on-quarter
- High inflation and squeezed spending power impacting consumer confidence
- Consumers still have higher savings compared to pre-pandemic levels
- Easing of restrictions may boost sentiment once inflation peaks
The Deloitte Consumer Tracker has reported a one-percentage point drop in UK consumer confidence in Q4 2021, marking the second consecutive quarter of decline. Inflation and higher household bills are causing the squeeze on spending power. Personal expenditure increased for 41% consumers due to rising prices. Discretionary spending is expected to decrease in Q1 2022, particularly in social categories like eating out and holidays. Utility bill expenses are set to rise by nine percentage points quarter-on-quarter. Despite these challenges, some consumers have higher savings than before the pandemic, and easing restrictions may improve sentiment once inflation levels off.
Factuality Level: 8
Factuality Justification: The article provides accurate information based on the Deloitte Consumer Tracker survey and includes expert opinions from Céline Fenech and Ian Stewart. It presents relevant data about consumer confidence, personal expenditure, and spending trends in the UK. The article is not sensationalist or opinionated, and it does not include any logical errors or fallacies.
Noise Level: 3
Noise Justification: The article provides relevant information about UK consumer confidence and its decline due to inflation and Covid-19 restrictions, as well as insights from Deloitte’s Consumer Tracker survey. It also includes expert opinions on the situation. However, it could benefit from more in-depth analysis of the factors contributing to inflation and potential long-term consequences for the economy.
Financial Relevance: Yes
Financial Markets Impacted: UK economy, consumer spending, inflation, essential goods and services, discretionary items (holidays, socializing), utility bills
Financial Rating Justification: The article discusses the decline in UK consumer confidence due to rising inflation and its impact on consumer spending, which affects various sectors of the economy. It also mentions the potential effects on financial markets through changes in consumer behavior and business investment.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: Although there is a decline in consumer confidence and an increase in household bills, it does not meet the criteria for an extreme event as it is related to economic factors rather than natural disasters, financial crises, political crises, accidents, terrorist attacks, health crises, environmental crises, technological disruptions, cultural/social issues or armed conflicts and wars.
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