IGD SCI June 2020

Source: IGD

Confidence has increased the most among the 35 to 44-year-old age group

The easing of lockdown measures is fuelling growing consumer confidence, according to the latest research from IGD.

IGD’s Shopper Confidence Index showed a combination of the easing, warm weather and low inflation had driven up confidence levels for the second consecutive month.

Consumers’ expected financial confidence had increased by 10 points to –13, with 35% now expecting to be worse off in the year ahead, which is down from 47% in May and 50% in April.

It also showed 16% expect to better off compared to 11% in May.

Shopper confidence has also grown in most regions, particularly Scotland, due to a sustained decline in Covid-19 hospital admissions and a lower mortality rate in Scotland, the survey found.

Confidence has also increased the most among the 35 to 44-year-old age group and those aged 55 and over.

However, shopper confidence is likely to remain fragile as shoppers contend with the impact of a deep economic downturn in 2020, with lower GDP and significantly higher unemployment.

Older shoppers aged 45 to 64 remain the least confident. These shoppers, of whom many have family responsibilities, may be concerned about the impact of Covid-19 on their health and economic prospects.

“Shoppers have been boosted by the easing of lockdown measures, the warm weather and low inflation. These factors may be holding back any reversal in shopper confidence for now,” said IGD director of global insight Simon Wainwright.

“The economic impact of Covid-19, including rising levels of unemployment, is likely to have a big impact on shopper confidence going forward. An increased focus on savvy shopping can be expected where value becomes more important long-term.”