New research of thousands of Europeans suggests a significantly improved consumer confidence picture across seven major European markets, in particular UK & Netherlands.
Savanta’s Consumer Compass Q1 2024 report shows that compared to last quarter (Q4 2023), across Europe there is improved consumer confidence in the economy by 4-points (-26% net to -22%), with biggest increases in confidence by market:
- Nordics from -23% net confidence in Q4 2023 to -10% in Q1 2024 (+13)
- Netherlands from -24% net confidence in Q4 2023 to -14% in Q1 2024 (+10)
- UK from -23% net confidence in Q4 2023 to -16% in Q1 2024 (+7)
Savanta’s research suggests this could be because of the marked increase in perceived levels of disposable income than this time last year, due to inflationary pressures decreasing. The UK (+15), Netherlands (+14), Spain (+11) and Italy (+10) have all seen major increases compared to last quarter in consumer’s perceived disposable income.
In particular this positive sentiment is being driven by younger people, with 18-34 year old’s much more likely to say they’re confident in their country’s economy (-7% versus -28% for +65’s), and even more likely to say they have more disposable income (+9% versus -21% for +65’s), compared to last year.
However, the picture is more challenging in Germany, the only one of seven markets researched where disposable income levels have not improved since last quarter. Germany (-9% net) and France (-15% net) are also the two markets where consumers have the lowest perceptions of job security compared to last year. Netherlands now has more consumers saying their job security is better than worse (+6% net) compared to last year.
In less positive news for World Earth Day (22 April), Savanta’s research also records a drop in concern among Europeans about the negative impacts of climate change, despite 2023 being confirmed as warmest year on record by the Met Office.
There has been a 4-point drop in consumers net concern about the impact of climate change from Q4 2023 to Q1 2024 (53% to 49%), and a 3-point drop in concern about the negative consequences of climate change on their families.
Alex Ward-Booth, director at Savanta, says: “Clearly there is a long and bumpy road ahead for European consumers, but our findings suggest that finally the European economy might be showing signs of recovery following the cost of living crisis. Younger people in particular appear to be especially optimistic about the lessening of inflationary pressures, leading to them saying they’ve got more disposable income.”
“The main concerns within our latest Consumer Compass report are around Germany’s economy – increasingly seen as the sick man of Europe – and signs that climate change has dropping down the agenda.”
“Consumer confidence remains both fragile and volatile, which is why it’s increasingly important for businesses to keep their fingers on the pulse of consumer sentiment and behaviour.”
For further insight on European consumer’s views on climate change, a blog will be available at Savanta.com from 22 April, or is available upon request.
Savanta’s Consumer Compass reports take place once a quarter, with a focus on a sub-section of the European economy each time. Fieldwork for Consumer Compass Europe Q1 2024 took place between 11-17 March 2024 and the section that was highlighted was sustainability.
