Consumer sentiment towards economy improves slightly in Q4 despite job market worries

  • UK consumer confidence improved in Q4 2022 after 15 months of decline
  • Deloitte Consumer Tracker based on responses from 3,492 UK consumers aged 18+
  • Consumer sentiment towards debt and household disposable income increased
  • Job security concerns rise amid labour shortages
  • Unemployment remains near 50-year lows but consumer spending expected to shrink

UK consumer confidence saw a positive shift in the final quarter of 2022, ending a 15-month decline, according to Deloitte’s Consumer Tracker. The survey, which polled 3,492 UK adults aged 18 and over between 27 and 30 December 2022, revealed improvements in sentiment towards debt and household disposable income. However, concerns about job security rose as labour shortages persist. Despite unemployment remaining near 50-year lows, consumer spending is expected to shrink this year. Deloitte’s chief economist Ian Stewart predicts a mild recession with low peak unemployment and growth resuming by the end of 2023.

Factuality Level: 8
Factuality Justification: The article provides accurate information from the Deloitte Consumer Tracker survey, cites expert opinions, and discusses various economic indicators such as unemployment, inflation, and wage growth. It also presents a balanced view of the current situation and future outlook.
Noise Level: 4
Noise Justification: The article provides relevant information about UK consumer confidence and its factors, including debt, household disposable income, economy sentiment, job security, and CFOs’ perspectives on labour shortages. It also offers insights from an expert economist. However, it could benefit from more in-depth analysis of the reasons behind these trends and potential long-term consequences.
Financial Relevance: Yes
Financial Markets Impacted: UK consumer confidence, job security, inflation, wage growth, unemployment, interest rates, and corporate margins
Financial Rating Justification: The article discusses changes in UK consumer confidence, which can impact spending habits and affect businesses’ financial performance. It also mentions unemployment, inflation, interest rates, and wage growth, all of which are relevant to the economy and financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in this article.

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