Consumer confidence continues to recover

27 Feb 2014

Consumer confidence has continued to recover over the last three months (November 2013 to January 2014), with nearly half of the consumers interviewed in a recent survey saying that they feel the economy has improved. dunnhumby’s Consumer Confidence tracker, which surveys approximately 3,900 Brits every quarter, saw a rise in confidence levels to 127 from 120 in October 2013, its strongest reading since it began in 2009.

  • More people feel that the economy and employment conditions have improved in the last few months
  • Consumers in mid income households demonstrated the most significant shift in confidence
  • Large group of consumers still unwilling to describe their financial situation as “good”  

Consumer confidence has continued to recover over the last three months (November 2013 to January 2014), with nearly half of the consumers interviewed in a recent survey saying that they feel the economy has improved. dunnhumby’s Consumer Confidence tracker, which surveys approximately 3,900 Brits every quarter, saw a rise in confidence levels to 127 from 120 in October 2013, its strongest reading since it began in 2009.

With positive macro-economic indicators continuing to emerge in recent months, the November to January quarter saw a 6% decrease in those who feel their personal financial situation is set to get any worse, alongside a steady increase in those who feel it’s going to improve. Optimism around employment conditions as unemployment rates continue to fall may also have had a positive impact on confidence levels, as 39% of people now believe the employment situation has improved over the past few months and that it will continue to improve in the near future - a rise of 10 percentage points since October 2013.

Despite the increased optimism around the direction in which the economy is moving, continued increases in the cost of living and muted real wage growth means that many consumers are yet to feel the benefit in their own pockets. A number of consumers interviewed for the survey are still unwilling to describe their financial situation as “good”, and confidence is growing at a slower rate among low income consumers.

dunnhumby ‘s insight shows that consumers in mid income households demonstrated the most significant growth in confidence during the quarter, up from 121 to 135 points, with many increasingly optimistic about their current and future economic situation. The tracker noted a 6% drop in concern around their job security. Lower income households revealed a slower 7 point rise in confidence over the last 3 months, driven by increased optimism that their personal financial situations are going to improve.

Simon Hay, CEO of dunnhumby, said:

“We’re encouraged that consumer sentiment continues to trend upwards. At the same time, we know that most people are still reluctant to describe their personal financial situation as "good", given the continued increases in the cost of living and muted real wage growth. Hopefully this situation will start to change if we continue to see positive economic signals, including ongoing GDP growth."


Philip Clarke, CEO of Tesco, said:

“Some consumers are starting to feel more upbeat about an improving economy, although they are still yet to feel the benefit to their own pockets. Whilst we are hopeful that consumer confidence will continue to improve in line with the economic recovery, we remain very focused on helping our customers to manage their budgets by offering them great value for money across their shop."

ENDS

To read the report in full, click here

The key findings of the research are:

  • This quarter saw a rise in confidence levels to 127, the highest level since the survey began back in 2009.
  • 43% of people say the economic picture has improved in recent months
  • 39% of people believe the employment situation has improved over the past few months and that it will continue to improve in the near future.
  • 17% of people felt that their financial situation had improved over this last quarter.

For more details contact:

dunnhumby press office: Helen Jones 020 8326 9509

OR Tesco Press Office 01992 644645

About the dunnhumby consumer tracker

Measured monthly since 2010, the dunnhumby consumer confidence tracker has a sample size of  approximately 3900 customers every quarter.   It is measured against a base of 100 set from July 2010, and is an authoritative barometer of how UK shoppers are thinking and feeling. For full methodology, please refer to the attached report.

About dunnhumby:

dunnhumby is the world’s leading customer science company. We analyse data and apply new insights from more than 400 million customers across the globe to create better customer experiences and build loyalty. Our insights and strategic process help clients create competitive advantage and enjoy sustained growth. dunnhumby employs more than 2,200 employees in offices throughout Europe, Asia and the Americas, and serves a prestigious list of companies including Tesco, The Kroger Co., Coca-Cola, Macy’s, Procter & Gamble, PepsiCo and Shell. For more information, please visit us at www.dunnhumby.com.

About Tesco:

Tesco is one of the world’s largest retailers with operations in 12 countries, employing more than 500,000 people and serving millions of customers every week.

These are the key findings of the fifth edition of The Consumer Today, the quarterly report from dunnhumby and Tesco, using their unique insights to provide a detailed picture of how British consumers feel about the economy in general, as well as their own personal situation.

For more information please contact the Tesco Press Office on
01992 644645

We are a team of over 530,000 people in 12 markets dedicated to bringing the best value, choice and service to our millions of customers each week. Our core purpose is 'we make what matters better, together'.