With hopes of a summer spending frenzy becoming more of a reality, optimism among UK business leaders has reached a record high.
With non-essential shops and other businesses having opened their doors, research suggests that economic recovery could be broader and faster than previously expected, reports the Guardian.
Research predicts a strong economic bounceback and reinforces hopes that consumers will part with billions of pounds over the coming months.
According to the Centre for Economic and Business Research (CEBR), consumers will spend around £50 billion of their lockdown savings. It has predicted roughly £314 million will be spent in the hospitality sector during the first post-lockdown week alone.
Elsewhere, the Post Office revealed that £590 million was withdrawn during March (the highest figure since September). While a survey of business leaders by Deloitte found record levels of optimism, with expectations of a “strong recovery in profits over the next 12 months”. The Deloitte study also confirmed that forecasts for hiring and investment were at a six-year record high.
The positivity found in these studies is also reflected in findings by the Federation of Small Businesses (FSB), which reported the highest levels of optimism among its members since 2014. The FSB data showed that 58% of small businesses believe their performance will grow during this quarter.
Business activity has quickened its pace over the past three months, according to data from NatWest. Growth was reported in 11 of the 12 UK regions, with Northern Ireland the only region to see a drop.
It was back in February when the Bank of England’s chief economist Andy Haldane described the UK economy as a “coiled spring” ready to explode with the right conditions. An opinion which, at the time, surprised many.
Since then, the figures have moved in the right direction and Mike Cherry, chairman of the FSB, spoke about the growing optimism, saying: “The certainty provided by the government’s roadmap is filling many small business owners with renewed confidence.”
A study by CEBR highlighted that consumer spending is at the heart of any economic recovery. It estimated that after 12 months of lockdowns and restrictions, consumers have an extra £192 billion to spend.
With money burning holes in people’s pockets, retailers and brands need to maximise every opportunity. Get in touch with the team at Delta Group to find out how we can help you translate optimism into sales.