Shoppers in the United Kingdom are exhibiting signs of cautious optimism in the run-up to the upcoming Christmas season, as low levels of unemployment and increasing wages imply a slight uptick in terms of spending confidence.
Acording to the most recent retail consumer survey of PwC, an accountancy firm, just more than a quarter of retail consumers in the United Kingdom believe that they will be better off in the next 12 months. This signifies an improvement in the sentiment as compared with that of the previous year and the start of 2018.
In a poll that was conducted among 2000 adults in the United Kingdom, PwC discovered that the number of consumers who are predicting that they will be better off was marginally higher as compared to those who are thinking that they will be worse off.
The figures come exactly a decade on from the lowest ratings that was recorded by the said survey, when 62 percent of the adults who participated in the survey believed that they would be worse off and only 12 percent think that they were better off.
The consumer markets leader at PwC, Lisa Hooker, stated: “Despite the recent negative indicators, both politically and economically, this may be a sign that consumer spending is more resilient than some observers expect, potentially buoyed by low unemployment and relatively high wage growth.”
Hooker continued: “In the critical run-up to Christmas, the cautiously optimistic consumer could represent a major boost for high street retailers already facing headwinds generated by increased online competition, business rates and Brexit-related costs.”
The retail director at PwC, Kien Tan, stated: “Looking forward, the younger the respondent, the more optimistic their outlook. Younger people, in fact all age groups under 45, think they will be better off on balance in 10 years’ time, with only over 55s consistently negative.”