Consumer confidence record low

Consumer confidence has fallen to an historic low with the deepest quarterly decline recorded, according to new figures.

The latest Deloitte Consumer quarterly tracker says the COVID-19 epidemic has led to:

*Consumer confidence in the first quarter of the year falling by nine percentage points, to -18% – its lowest level since the tracker began.

*Confidence in job security saw the greatest decline, falling 15% from the previous quarter, to -20%;

*Thirty five per cent of consumers say they have lost money due to holiday or event cancellation;

The new report says that, having started the New Year with renewed optimism, consumer confidence reached a record low by the end of the first quarter as the impact of COVID-19 unfolded.

The tracker measuring quarterly changes in confidence across six measures including job security, household disposable income, debt, education and welfare and general health and wellbeing. Ian Stewart, chief economist at Deloitte, said: “The shock to the economy in a matter of weeks is causing jobs losses on a greater scale than in the financial crisis.

“The government is leaning against the downturn with unprecedented support for jobs, incomes and businesses.

“Despite this, worries about job security and the state of the economy have generated a sharp downturn in consumer confidence.

“With the peak of the outbreak not yet reached, consumers are expecting things to get worse before they get better.”