By Kristy Dorsey
Confidence among the UK’s consumers has taken a predictably sharp decline amid the Covid-19 outbreak, but has yet to fall to levels seen during the worst of the 2008-09 financial crisis.
Researchers said the findings from PwC’s regular poll show that measures announced by the Government appear to have cushioned the blow of the current turmoil for some consumers. This indicates that spending intentions have the potential to bounce back quickly once the crisis abates.
PwC found that sentiment fell by 29 points to -26 between December 2019 and March 2020, the sharpest fall in more than a decade. However, this was a far better than in the immediate aftermath of the Lehman Brothers collapse, when sentiment plunged to -51 in October 2008.
Current confidence levels are also higher than during the post-recession austerity period, when sentiment fell to -42 in early 2012.
Lisa Hooker, consumer markets leader at PwC, said measures such as wage guarantees for furloughed employees seem to be providing some reassurance. The question is whether that will be enough should the current lockdown last longer than expected.
“Which retailers and brands consumer choose to return to will depend on how they communicate with and treat their customers and staff today, and it’s crucial that the industry remains mindful of how to approach the recovery period, when it eventually comes,” she added.
The survey was carried out from March 20-22. This was after the Government’s request for people to work from home and socially distance, but before the Prime Minister announced more stringent controls on movement.
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