PwC’s consumer sentiment score rises from –13 in April to +1 in the latest survey
Only three in ten (30%) NI adults describe their household finances as ‘healthy’
25%of NI shoppers have already started their Christmas shopping – almost double the UK average of 14%
NI consumers are the most cautious spenders: 31% plan to spend less this Christmas compared with 22% planning to spend more
PwC’s latest Consumer Sentiment Survey shows that while confidence has rebounded UK-wide to its highest level in five years, Northern Ireland is still recovering from financial distress – even as its shoppers lead the way in getting ahead on Christmas.
The survey, a barometer of consumers’ spending intentions, recorded an index score of +1 in August, after a sharp fall in April to –13 as fears over the cost-of-living gripped consumers and conflict continued in the Middle East. Now, after the hottest UK summer on record, the index score has reversed that decline and is now two points higher than in January, continuing the upward trend since the start of last year.
Despite a recovery in confidence, consumers in Northern Ireland continue to feel financially stretched. Four in 10 consumers say they are worse off than a year ago, while only 30% describe their finances as healthy enough to have money remaining at the end of each month. Cost of living pressures continue to weigh heavily, with 83% concerned about rising everyday costs.
However, there are encouraging signs that some financial anxieties are beginning to ease for people in Northern Ireland, with concern about job security falling to 30%, down from 36% in January, while concern about rising mortgage or rental costs has dropped to 42%, down from a spring peak of 48%.
Northern Ireland leads the UK on early Christmas shopping
Northern Ireland shoppers appear to be starting their Christmas shopping early as a way to spread costs over a longer period. A quarter (25%) of NI consumers said they had already begun their Christmas shopping by mid-August – the highest proportion of any UK region and almost double the UK average of 14%. NI shoppers are also the least likely to say they will leave shopping later than usual, at just 2%, compared with a UK average of 4%.
Yet this early start does not translate into bigger budgets. Northern Ireland has the most negative net spending intention of any UK region: 22% of NI consumers plan to spend more on Christmas shopping and celebrations this year, while 31% plan to spend less – a net balance of –9%. This compares with a positive UK national balance of +4% (25% planning to spend more against 21% planning to spend less).
Alison Blair, Managing Director of Research at PwC Northern Ireland comments on the trends:
“Northern Ireland presents a fascinating picture as we head into the retail sector’s ‘Golden Quarter’. Shoppers here are getting ahead of the curve, with more people starting their Christmas shopping than anywhere else in the UK. But they’re doing so out of necessity as much as enthusiasm, spreading costs over a longer period and keeping a close eye on household budgets.
“For retailers and hospitality businesses, the opportunity is clear. Consumers are engaged and planning ahead, but they’re also discerning. Those that can combine strong value, timely offers and a compelling customer experience will be best placed to capture spending in the months ahead.”
