Consumer confidence dips to lowest recorded level

Consumer confidence in the first quarter of the year fell to -18% as a result of the coronavirus pandemic, Deloitte’s consumer tracker has revealed.

Falling by 9% from the same period last year, it marks the deepest quarterly decline ever recorded by the tracker.

Consumer sentiment on the state of the economy fell by 43% quarter-on-quarter to -71%, with those surveyed anticipating a worsening of the economic situation over the next three months, before any notable improvement.

Of all the categories measured, confidence in job security saw the biggest decline, falling by 15% to -20%, indicating an increased concern about the impact the coronavirus pandemic will have on the economy and jobs.

“The shock to the economy that we have seen in a matter of weeks is causing jobs losses on a greater scale than in the financial crisis,” said Ian Stewart, chief economist at Deloitte. “The government is leaning against the downturn with unprecedented support for jobs, incomes and businesses.”

“Despite this, worries about job security and the state of the economy have generated a sharp downturn in consumer confidence. With the peak of the virus outbreak not yet reached, consumers enter the second quarter of the year expecting things to get worse before they get better.”