Despite a weak uptick for the second quarter in a row, the Deloitte consumer confidence index continued to trend at record low levels in Q3 2020.

The index gained one percentage point quarter on quarter, to -16%, as the partial reopening of the hospitality sector helped to brighten the mood of consumers during the summer months.

In Q3 2020, we continue to see the negative impact of COVID-19 on consumer sentiment as scores for all measures of confidence except personal finances remain well below the same time last year.

Although the data shows a fall in grocery spending compared to Q2, there was an improvement in the on-trade as people started to experience a taste for going out or going on holiday this summer as restrictions were lifted and life was getting back to normal.

Key points from this quarter:
• Net spending on grocery fell by 11 percentage points compared to Q2 2020 as the reopening of restaurants and bars in July attracted more spending outside of the home. However, with consumers continuing to work from home, grocery net spending remained 12 percentage points higher than it was a year ago

• Net spending on alcohol and tobacco was seven percentage points higher than for the same period a year ago, despite a three percentage-point decline compared to Q2

• Net consumer spending in the going out and restaurant categories grew by 18 and 29 percentage points respectively in Q3 2020 compared to Q2, boosted by the reopening of restaurants and bars

• There was a two percentage point increase, from 39% to 41%, in the total percentage of consumers paying for delivery passes.

(source: Deloitte, image: pexels)