Consumers still focusing on frugality and value despite economic recovery
Despite the UK economy emerging from the recession, consumer confidence is continuing to fall, according to the latest Consumer Eye survey conducted by News International Commercial.
The survey, which is published quarterly by the media publisher, found consumers are still fearing the worst from the British economy and are continuing to focus on frugality and value.
Compared to three months ago, and despite the economy rising out of the recession, consumer confidence has dropped five points from -23 to -28 in the latest wave.
The publisher says that factors contributing to the decrease include post Christmas debt and increased fuel costs due to the adverse weather conditions experienced across the UK this winter.
It adds there is also a level of uncertainty about the coming twelve months and the upcoming general election.
According to the survey results, 55% of respondents are making cutbacks wherever possible and 48% are changing their shopping habits. In addition, 44% of consumers are perceiving value differently.
Compared to the last wave, 70% now believe that value is “getting good quality” and 70% of quality newspaper readers also feel that good quality foods and holidays are still an essential, as is Sky TV.
Claire Myerscough, business intelligence director at News International Commercial, says: “The latest wave shows that consumers are continuing to adjust their spending due to a backdrop of economic and political uncertainty. Frugality is still a key theme in consumer spending although many are willing to pay for products that deliver a quality benefit or durability.”
