We are pleased to present the latest results of the Deloitte Consumer Tracker. This report is an economic update focusing on consumer sentiment, spending attitudes and behaviours based on our proprietary consumer survey and analysis of the macroeconomic environment.
UK consumers are feeling more positive about their incomes than at any time in the past two years, since the Tracker began. Whilst sentiment remains in negative territory, Q3 2013 continues an upward trajectory that has been underway for a year. Consumers are more positive about job opportunities and job security, a sign of an improving labour market, albeit one with stubbornly low wage growth.
While momentum in the consumer market continues to build, consumers looking ahead to 2014 remain concerned about rising prices. However, more people expect the value of their property to rise compared with a year ago, and more expect their debts to fall.
While the uptrend in consumer confidence is encouraging, the key to strengthening the nascent recovery in the consumer market is a return to above-inflation growth in real incomes.