Consumer optimism rises to five-year high
Consumer optimism for the coming year has jumped to a five-year high due to increased political certainty, according to the latest research.
More UK consumers believe they will be financially better off over the next 12 months than worse off, as net sentiment has jumped from minus seven to three for the first time in five years.
The latest consumer sentiment survey from professional services firm PwC found that optimism levels were higher among young people and Londoners.
Meanwhile, the 55 to 64 age group showed a slight uptick in sentiment, although the group remained the most pessimistic overall.
Consumers are planning to splash the cash on holidays and home improvements, the survey of 2,000 adults found.
However retailers could continue to feel the pinch, as 30 per cent of respondents said they will waste less and 29 per cent said they will shop around more.
Meanwhile, 33 per cent said they would buy less from fashion retailers and 24 per cent said they planned to buy clothes less often.
PwC consumer markets leader Lisa Hooker said: “It seems that the recent political certainty has seen consumer sentiment get a much needed boost, reaching the highest it’s been in five years.
“This is a good result and will hopefully make for an improved 2020 for retailers as challenges continue to impact the sector.
“We’ve heard how Christmas was tough for some high street brands.
“However, our survey shows that UK consumers are increasingly positive about their personal financial prospects, and this spans across the country, where sentiment is now relatively consistent, with no single region lagging behind the national average.”