Consumer confidence at highest level since tracker began
The Deloitte consumer tracker has shown consumer confidence at the highest level it has ever recorded.
Overall consumer confidence is at -3%, an improvement on last quarter's -6% and a six point improvement year-on-year.
Confidence in levels of disposable income are at -11%, better than the -15% seen in the previous quarter and a sharp increase of 13 points year-on-year.
Deloitte reports that May's retail sales growth was the highest in 17 months, however this was heavily linked to online sales.
Despite optimism amongst consumers Deloitte reports that businesses are "placing as much emphasis on defensive strategies as they did during the height of the euro debt crisis in 2012 and immediately after the EU Referendum".
A squeeze on consumer spending in 2017 and increased cost pressures have hit bricks and mortar retailers and Deloitte predicts the average vacancy rate in shopping centres will be more than 25% in 2020.
Pessimism over the long-term impact of Brexit among business leaders was to be at its highest level since Deloitte began tracking it midway through 2016.
Ian Stewart, chief economist at Deloitte, said: "Consumer confidence has rallied against a backdrop of favourable economic fundamentals. But while consumer confidence is on the rise the mood in business is more cautious reflecting the slowdown in UK growth and Brexit uncertainties.
"Buoyant consumer sentiment reflects a better picture in terms of jobs and wages. Add in warm weather, a royal wedding and a football World Cup, it's not hard to see why consumer spirits have been given a lift."
