Confidence has dropped to a record low as the cost of living crisis continues to impact consumer spending habits, according to Deloitte’s latest Consumer Tracker.
Confidence fell for the fifth consecutive quarter in Q3 2022, falling by one percentage point to a historically low -20%.
The tracker is based on responses from 3,226 UK consumers aged 18+ between 17 and 18 September. Overall consumer confidence has fallen to its lowest level since the tracker began in Q3 2011.
Two in five (39%) consumers said they are spending less on going out and on leisure activities as a way to save money, resulting in net spend across leisure falling quarter-on-quarter by two percentage points, to -12%, in Q3.
Consumers also indicated they will spend "even less" on leisure in Q4 2022, with intended net spend down across every leisure category, at a time when 59% of consumers believe they will have less money to spend for the Christmas period.
Both essential and non-essential spend declined for a second consecutive quarter in Q3, decreasing by two and one percentage points respectively, indicating that consumers are cutting back across all areas.
Simon Oaten, partner for hospitality and leisure at Deloitte, said: "The hospitality industry has been one of the hardest-hit in recent years.
"As consumers assess their budgets amidst rising costs, many are having to prioritise the essentials, directing spend away from discretionary categories, including leisure. Many hospitality businesses are already feeling the effects of lower footfall, whilst also having to counteract rising running costs themselves."
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