Consumer confidence plummets again

Nearly 60 per cent of consumers surveyed last month believe their household will be worse off in the next 12 months, compared with 37 per cent in April.

Older consumers and those in lower income groups are the most pessimistic, with nearly seven in 10 DE respondents believing their household will be worse off, of which three in 10 think they will be much worse off. Seven in 10 consumers over 65 think they will be worse off in the next 12 months.

In the past six months, 35 per cent of consumers have been shopping less often, 28 per cent have delayed buying furniture, a quarter have bought more from friends or items that are second-hand and 16 per cent have bought fewer designer products.

Cash-strapped consumers are willing to cut back if they have to, the report found. A third would spend less on clothes, shoes and accessories, 37 per cent would cut back on electronic goods and 28 per cent on furniture.

Grocers are expected to be affected too. More than half (51 per cent) of consumers said they would buy cheaper grocery items if they needed to. 58 per cent said they would buy fewer items and 57 per cent said they would buy more on Sale.

The rise of the discount grocers could hit supermarkets harder too. According to the survey, 34 per cent of consumers would switch to a cheaper supermarket such as Aldi, Lidl and Netto if they felt the squeeze more.