World Economy

CCI in UK Plummets

CCI in UK PlummetsCCI in UK Plummets

UK consumer confidence fell in the first three months of 2016, according to the latest Consumer Tracker from Deloitte. The quarterly survey of 3,000 UK consumers reveals a renewed caution in the consumer sector, after confidence fell by three percentage points year-on-year in Q1 2016, from -5% to -8%.

The business advisory firm said the fall in overall confidence was driven partly by an unusually large seasonal decline in sentiment about general health and wellbeing, NamNews reported.

This year the trend has been particularly pronounced, with the confidence reading for health and wellbeing falling by six points from Q1 2015, to its lowest level since the survey began in Q3 2011.

Ben Perkins, head of consumer business research, commented: “The UK’s consumers are increasingly health-conscious. The flu season arriving later than usual and extensive media coverage around health in the first three months of the year, seem to have focused consumers’ attention on health and wellbeing as an issue.

“In addition, the recent sugar tax debate, as well as the growing use of health and fitness wearables and apps may also be increasing consumers’ awareness of their own wellbeing.”

According to the survey, the confidence gap between homeowners and non-homeowners is now at its widest point since the Consumer Tracker began. Non-homeowners reported a four point fall in confidence from the previous quarter.

Furthermore, London-based consumers were significantly less optimistic than consumers in other regions, with overall confidence in the capital falling by ten points year-on-year. Londoners’ confidence towards job security fell by six points and disposable income by nine points, compared to the previous quarter.