Net spending on eating out and short breaks increased in Q4 2013 despite a dip in consumer confidence, new research from Deloitte shows.
The Deloitte Consumer Tracker survey found that the balance of people who spent more on eating out and short breaks was -9% in the fourth quarter of last year, compared to -11% in Q4 2012. Deloitte said falling inflation helped reduce downward pressure on discretionary spending despite no real income increase.
Consumer confidence was rated as -11% in the fourth quarter, against -8% in Q3, although Deloitte described as a set-back rather than indicative of long-term decline.
Meanwhile, net spending on holidays stabilised, improving by a point year-on-year (-9% in Q4 2012 to -8% in Q4 2013).
Graham Pickett, head of travel, hospitality and leisure at Deloitte, said: “We think the dip in consumer confidence is a setback rather than a longer-term, underlying decline. Consumer sentiment is higher than it was a year ago and an accelerating economy and lower inflation should bolster consumer incomes in 2014.
“Consumers are being selective, trading down in some categories, in order to be able to trade up in others, such as their holidays and eating out. Despite the emergence of signs of a recovery in the consumer economy, the job of selling to them will continue to be challenging as the ‘considered’ buying behaviours developed during the recession are here to stay.”
The survey is based on a nationally representative sample of over 3,000 UK adults aged 18+ between 3 and 5 January 2014.
