Leisure spending jumps despite dip in consumer confidence
Spending in the leisure sector jumped in the third quarter of the year despite a slump in overall consumer confidence driven by ongoing Brexit uncertainty.
A boost in disposable income confidence, which was up one point year on year, helped to drive leisure expenditure as consumers favoured experiences over buying material goods.
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Disposable income confidence among 18 to 34 year olds increased 10 points compared to last year, sparking an increase in spending in nine out of 11 leisure categories including eating out, culture and entertainment and gym and sports.
However, UK consumer confidence fell to minus nine per cent in the last quarter, down two points compared to 2018 and one point on the previous quarter, according to research by Deloitte.
Sentiment on job security fell three points to eight per cent and confidence around job opportunities plunged five points to minus six per cent, the survey of 3,000 UK consumers found.
Deloitte chief economist Ian Stewart said: “A decline in consumer confidence this quarter, combined with a fall in official unemployment figures show that the period of remarkable resilience in jobs and earnings is coming to an end.
“With Brexit cited as the biggest risk businesses face, the last quarter has also seen heightened concern over slowing growth in the UK and Eurozone and CFOs are tightening their purse strings in response.”
Read more: UK consumer confidence staggers in face of no-deal Brexit
Stewart added: “The headwinds from a major global slowdown and uncertainty at home point to weaker growth ahead.
“As a result, 2020 is likely to see not only lower levels of consumer confidence but also a slowing down of consumer spending growth.”
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