Sep 24, 2016 / by Rachel / In Consumers / Tags: Consumer confidence bouncing back after Brexit fears wane claims Syrac Inspirations / Comments Off on Consumer confidence bouncing back after Brexit fears wane claims Syrac Inspirations
Syrac Inspirations believes consumer confidence is increasing as markets begin to stabilise in light of the result of the recent EU referendum.
On June 23rd, the United Kingdom voted to leave the European Union in a referendum that engrossed the country for weeks leading up to the result. There were many who believed leaving the EU would weaken the economy and send the country into financial turmoil. However, after an initial dip in the immediate aftermath, the markets are beginning to stabilise. Syrac Inspirations refers to recent published statistics to support its’ argument that consumer confidence in returning.
A paper by GfK titled ‘Consumer Confidence Barometer on Behalf of the European Commission’ was released in August and states, “British consumers’ propensity to make major purchases rose nine points” (Marketing Week, 2016). In July, following the vote to leave the EU, people were concerned with the future of the economy which saw consumer confidence drop to its lowest point since 1990. However, these recent results show a restored confidence in spending after a period of uncertainty.
In addition to the GfK report, the Office for National Statistics (ONS) have stated retail sales were originally anticipated to increase 0.1% but in July retails sales had exceeded all expectations by increasing 1.4%. When discussing the economy, Joe Grice, chief economist for ONS was quoted as saying, “The referendum result appears, so far, not to have had a major effect.”
The results of the paper came as a surprise to many as people are less likely to spend and are more interested in saving during times of economic uncertainty, yet, clearly these statistics show the opposite to be true. Furthermore, figures from the British Bankers’ Association (BBA) show there were 168 million purchases on credit cards during July; this is higher than the average of the past six months and another indicator of consumer confidence.
Syrac Inspirations are based in Sheffield and since the referendum the city has secured a number of positive deals. Most notably a £1billion partnership with a Chinese construction group that will consist of four or five projects over the next three years, creating hundreds of jobs. Rachel Robinson, Managing Director of Syrac Inspirations, is optimistic about the future: “It’s great to see consumer confidence increasing, we want to see it continue rising. We are a nation of shoppers and at Syrac Inspirations we can help businesses to reach these customers.”
Syrac Inspirations are a sales and marketing firm that offer bespoke campaigns with a focus on building personal relationships with customers to increase brand loyalty. They use face-to-face marketing to build strong connections by personalising the customer experience and have developed a policy allowing businesses to pay on results, as this offers great flexibility for companies with any budget size for campaigns.