UK consumer confidence inched up +3 percentage points in the last three months, according to new research from KPMG. However, while shopper sentiment has improved – increasing discretionary spend and prompting hopes of a summer spending boost – consumers remain budget-conscious in their buying behaviours.

Original research of 3,000 UK shoppers in KPMG’s Consumer Pulse showed that the proportion of Brits feeling financially secure has risen by +3 percentage points to 58% this quarter, with half (50%) also feeling able to spend freely. However, 14% remain cautious when it comes to purchasing and are still actively cutting discretionary spend to pay for essentials.

“Consumer confidence has rallied over the last quarter,” Linda Ellett, Head of Consumer, Retail & Leisure at KPMG UK, said. “Businesses will be hoping that this improvement brings about increased spending confidence during the summer months. But macroeconomic confidence still looms large, with half of consumers still to be convinced that the economy isn’t worsening.”

KPMG’s poll showed that while overall spending confidence was improving, consumers were still exhibiting savvy spending behaviours to make budgets work harder. Almost a quarter (23%) bought more promotional or discounted items when shopping in the last quarter, while just over a fifth (22%) had used their loyalty cards more.

Over half (51%) of consumers feel that the economy is worsening – however this is down by -7 percentage points compared to last quarter, showing an improving trend.