Deloitte, which commissioned YouGov to survey 3,200 UK grownup customers on 13-16 June 2025 for the most recent second-quarter knowledge, calculates client confidence as an combination of six particular person measures: job safety, job alternatives, family disposable earnings, degree of debt, youngsters’s training and welfare, basic well being and wellbeing.
The second quarter’s drop marks the bottom confidence degree for the reason that first quarter of 2024.
Whereas important spending within the quarter dropped by 4.6 share factors as a result of seasonality of decrease utility payments, this solely translated right into a marginal 1.5 share level uptick in discretionary spending.
Essentially the most vital boosts to discretionary spending have been in clothes and footwear, which noticed an uptick of 6.6 share factors, adopted by holidays and motels, up by 4.7 share factors, and consuming at eating places, at 2.8 share factors.
Oliver Vernon-Harcourt, associate and head of retail at Deloitte, mentioned: “Total, client spending has been extra risky in current months, displaying each constructive and unfavorable traits.
“Total, tactical spending has grow to be extra embedded in customers’ behaviours and mixed with their issues concerning the outlook for jobs and unemployment, might imply client demand will stay subdued till confidence within the UK economic system additional strengthens and stabilises. Trying forward, extra constructive knowledge will likely be required to again up any sustained progress in client spending.”
