- The Deloitte Consumer Tracker reveals UK consumer confidence fell by three percentage points in Q2 2022, reaching a historic low of -19% and below the previous record set during the lockdown of March 2020.
- 53% of consumers who are spending more say it is due to prices going up;
- Almost every measure of consumer confidence in Q2 declined on the previous quarter, with sentiment on disposable income falling to a record -55%, the lowest in the Tracker’s history; and
- Consumer sentiment on the state of the economy fell 11 percentage points in Q2; edging towards levels last seen in summer 2020, when consumers were living under COVID-19 restrictions.
The rising cost of living has forced UK consumer confidence to a record low of -19% in Q2 2022, according to Deloitte’s latest Consumer Tracker, as rising inflation and subsequent price increases tighten the squeeze on consumer spending power. Consumers are most pessimistic about their household disposable income, with sentiment also dropping to an all-time low of -55% this quarter.
In addition, 62% of consumers are now spending more, compared to less than half (49%) this time last year. Of these, 86% say their increased spend is specifically due to higher prices. Adjusted for the whole population, it means that the rising cost of living is now driving greater expenditure for more than half (53%) of all UK consumers.
The Deloitte Consumer Tracker is based on responses from 3,031 UK consumers between 17th and 21st June 2022, in the immediate days following the UK’s interest rate rise to 1.25%.
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