Consumer Confidence

Consumer confidence means the confidence that existing and potential customers have in the UK economy.

If the economy is experiencing growth (doing well) and most people have jobs, consumers are more likely to:

• Feel confident about the future

• Spend their money – which leads to increased sales for enterprises

If the economy is experiencing a recession (doing badly) consumers are likely to:

• Lose confidence about the future

• Worry about whether their jobs are safe

• Only spend money on essential things, which can lead to lower sales for enterprises.