Analysts from Deloitte are predicting greater consumer spending in the coming months as disposable income sentiment rises.
With MI often viewed as non-essential or luxury items, this new data could suggest increased spending across the market.
According to the Deloitte Consumer Survey, which surveyed 3,000 adults in the UK, falling inflation and rising employment throughout last year has risen spirits, giving consumers the most positive outlook on discretionary spending for 18 months.
“Consumer spending rose modestly last year, even as the wider economy suffered a double dip recession," commented Deloitte chief economist Ian Stewart. “Lower inflation, improving credit conditions and rising disposable income are positives for the UK consumer.
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The data, however, is in contrast to other findings from the survey, which showed that consumers are remaining fiscally conscious in 2013, with most expecting increased bills. And while the figures show a positive turn in the market, Stewart states that any return to pre-recession spending is still a long ways off.
“The factors which fuelled the consumer boom of the ‘90s and ‘00s - steady economic growth, ultra low inflation, cheap and plentiful credit, and soaring house prices won’t return soon," continued Stewart. “After the biggest consumer recession since the 1930s UK consumers remain very cautious. It is likely to take another five years for consumer spending just to get back to where it was in 2007.
“The worst may be past for the consumer, but any comeback will be long and slow.”