Consumer confidence fell by one percentage point in the third quarter of 2021, according to the latest Deloitte Consumer Tracker.
Nevertheless, financial and consulting specialist Deloitte said “strong spending” was seen in discretionary leisure categories including holidays.
The Deloitte Consumer Tracker has been measuring UK consumer confidence on a quarterly basis for 10 years.
The latest analysis is based on responses from 3,185 UK consumers between September 17-20.
Overall confidence was dented by reduced optimism around personal finances, particularly in the level of debt and household disposable income.
However, consumers tipped discretionary spending into positive territory in Q3, to +2%, for the first time since the Deloitte Consumer Tracker began.
“Consumer enthusiasm for leisure spending following Q2’s reopening of the economy continued into the third quarter, aided by the reopening of more international borders,” said Deloitte.
“Strong spending was seen across almost every leisure subsector, most notably on holidays (short and long), culture and entertainment, and attending live sports events.”
Discretionary spending is set to “normalise” in Q4, according to the tracker.
Ben Perkins, head of consumer research at Deloitte, said: “Whilst overall confidence remains at the same level as Q3 2019, thus maintaining pre-pandemic confidence levels which returned last quarter, the end of furlough, removal of universal credit top-ups, and rising inflation have contributed to a quarterly fall for the first time this year.”
More than a third (36%) of consumers said their overall spending had increased in the last three months, primarily driven by rising utility bills and transport spending as more workers returned to offices.
Simon Oaten, partner for hospitality and leisure at Deloitte, said: “Following the reopening of the hospitality sector, hotels and restaurants have quickly found that amid the strong consumer demand, one of the key challenges to its recovery has been staffing.
“Hospitality businesses have been more than twice as likely as other industries to be experiencing challenges in filling vacancies compared with normal expectations for this time of year.”