Consumers are feeling more optimistic about how much they will be able to spend in the coming year, according to a new survey.
The Spring Consumer Sentiment Survey by professional services firm PwC found that, although still in negative territory, consumer sentiment has recovered slightly from the low seen last autumn.
The measure was -25, compared to -32 in January, -44 last autumn, and -51 in October 2008 at the beginning of the global financial crisis.
The most optimistic age group is the under 25s, but over 65s are close behind – their age group has benefitted from higher lockdown savings, little or no mortgage repayments, the pensions triple lock (although it was a double lock last year), and government cost of living assistance targeted at older age groups.
But overall, almost a third of consumers polled say their finances are “healthy”, with 90% saying they do not consider themselves to be struggling.
Lisa Hooker, leader of industry for consumer markets at PwC said: “It is encouraging to see how consumers are responding to the changing economic environment.
“While sentiment is still negative, it is beginning to recover.
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“It is interesting to see how those, particularly in the under 25 and over 65 category, want to spend again on “luxuries” like going out and spring fashion.
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“I would encourage retailers to lean into this as the brighter weather will spark less concern with energy prices, especially as the energy price guarantee has been extended.
“Time and time again, consumer sentiment continues to show me how resilient this sector is – both business and consumers have been savvy during the last 12 months.
“That innovative thinking has laid the foundation for what we hope will build more sector success in 2023”.
