News & Insights
Industry economists have predicted the UK’s economy will rebound at a faster rate than previously believed, thanks to a surge of in-person shopping after lockdown measures were lifted.
Deloitte has fuelled optimism for retail businesses after research found that physical store sales are set to increase in line with consumer confidence throughout the year.
A survey conducted by the firm’s Consumer Tracker discovered that levels of confidence have increased from -16.9% in Q4 2020, to -11.1% at the end of Q1 2021.
This data shows the sharpest rise in consumer confidence since the platform was launched. Even more encouragingly, they also found that 60% of people listed a return to shopping as their number one choice of leisure activity once COVID restrictions were lifted.
A recently published report from the EY Item Club has further complimented these findings.
The forecast group has revised their predicted GDP growth for this year from 5% to 6.8%. Q2 2021 is set to reinforce this prediction, with more of the population vaccinated, greater numbers are expected to indulge in shopping and eating out.
The EY Item Club have also modified their estimate of when the economy is set to get back to pre-pandemic levels: Q2 2022, which is three months earlier than previously thought.
Chief Economic Advisor of the group, Dr. Howard Archer, welcomed the new findings: “businesses and consumers have been innovative and flexible in adjusting to COVID-19 restrictions, and while restrictions have caused disruption, lessons learned over the last 12 months have helped minimise the economic impact.”
Under the government’s roadmap out of lockdown, non-essential shops re-opened their doors to customers on the 12th of April in England and Wales and the 26th of April in Scotland. Northern Irish shops are set to open on the 30th of April.