Deloitte’s latest survey results demonstrate an upward trend in leisure spending.
As uncertainty dominates the headlines, with Brexit negotiations continuing and inflation rising to 2.9% in June, consumer spending power is shrinking for the first time in three years.
According to Deloitte, this decline in confidence begins the upward trend in leisure spending first seen in 2016 and mirrors the pattern seen across the retail market as reported in its Consumer Tracker.
The analysis also noted that the leisure consumer has become more cautious in the second quarter of 2017, as overall consumer confidence has declined. However, confidence in leisure spending remains more robust than other areas of discretionary spending. The only categories to see an improvement in spending were the discretionary leisure areas such as short and long haul holidays and going to the gym. They are beginning to tighten their belts and switch from discretionary leisure to protect their everyday leisure spending such as their daily coffee or TV subscription.
Consumers aged 18-34 are looking a lot more optimistic than a year ago, with spending expected to increase across all categories next quarter, apart from long haul holidays. Similar to the optimism of the first age group, consumers aged 55+ are expecting to increase their spending on holidays over the next three months compared to a year ago, with spend in other categories expected to remain constant or see a decline.
However, consumers aged 35-54 appear to be feeling the squeeze this year and are expecting to decrease their spending across all categories next quarter, apart from short haul and long haul holidays.
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