UK consumer confidence in the first quarter of the year fell by nine percentage points to -18, marking its lowest level since the Deloitte Consumer Tracker began in 2011.
Deloitte’s analysis is based on responses of more than 3,000 UK consumers between 20 and 24 March 2020, as the UK’s lockdown measures came into force.
Of all the categories measured, confidence in job security saw the biggest quarterly decline, falling by 15 percentage points to -20. Deloitte said this indicates that UK consumers are increasingly worried about the impact the pandemic will have on the economy and their jobs.
“The shock to the economy that we have seen in a matter of weeks is causing jobs losses on a greater scale than in the financial crisis”, Ian Stewart, chief economist at Deloitte, commented.
“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 virus outbreak not yet reached, consumers enter the second quarter of the year expecting things to get worse before they get better.”