One of the major casualties of the recession was consumer confidence. Consumers no longer wanted to spend money on non-essential goods or high commitment purchases such as furniture, and the retail sector suffered massively as a result. However, according to a recent report from the British Chambers of Commerce, consumer confidence has increased massively in the first quarter of 2010.
According to the report this is the direct result of the government’s announcement that the recession is over.
Economist Matthew Davidson comments; “While consumer confidence continued to fall during the last quarter of 2009 and as a result, many retailers experienced disappointing Christmas sales. These figures do indicate that consumer confidence it up and people are starting to buy again.”
“ While I absolutely agree with the contention that consumer confidence has increased as a result of the recession being over, I also think that many retailer have been forced to look and change the way in which they do business and that subsequently this has also had a positive impact on their sales. “
Of the 2, 000 small businesses questioned over 65% said that they have experienced an increase in sales revenue over the first quarter of 2010.