MidBritain - Insight into the UK's Superconsumers

This quarter's issue of The MidBritain Report shows that as Britain climbs out of recession, MidBritons' confidence in the overall economy has risen. With this year's imminent election, the latest report shows that MidBritain still holds high hopes for Tory duo David Cameron and George Osborne.

1. With Britain now officially out of recession the New Year sparks a more optimistic note, with savvy MidBritons confidence in the UK economy on the rise

Despite leaders of the three major political parties warning of significant cuts to public expenditure, higher taxes for top earners and continued rises in unemployment ahead, a higher proportion of MidBritons are cautiously upbeat about the future prospects of the British economy.

Building on last quarter’s (Q3 2009) growth in confidence towards the economy, the latest report demonstrates that a sizeable chunk of MidBritain is beginning to feel more confident on the UK’s economic recovery.

MidBritons who think the stock market is in a worse-off condition dropped by 12 percentage points this quarter to 39%*, half what it was for the same period in 2009 and the lowest it has been since the polls inception 3 years ago. The gradual pickup in people’s perceptions of the housing market has continued too. Those who rate it as being in a poor state fell by 9% to 45%*, which compares favourably to the corresponding quarter last year when it was at an all time high of 77%.

Although MidBritons’ fear over redundancies have reduced significantly this quarter, unemployment remains top of their concerns with 8 in 10 (83%) feeling negatively towards it. MidBritain shows high levels of resilience towards the rise in VAT; prices on the high street are thought to be improving with fewer than a third (29%*) of people thinking they’re bad.

2. MidBritain’s confidence in the economy on the up

Uplift continues this quarter according to the MidBritain Consumer Confidence Index* now at a record high since the start of tracking. The extent to which MidBritons feel uncomfortable with outgoing household bills remains largely unchanged since last quarter. 53% of MidBritons continue to be worried about their disposable income. In the same instance there have been no significant fluctuations in intention to spend in the next 12 months with holidaying at home and abroad scoring the highest overall (see below for ranking order).

Top 5 highest scoring answers in rank order for January 2010:

1. Going on holiday abroad
2. Going on holiday in the UK
3. Home improvements (DIY and decoration)
4. Home entertainment equipment (e.g. TV, computers, games console
5. Buying a new furniture e.g sofa, bed

3. MidBritain holds high hopes for Tory duo David Cameron and George Osborne

When asked which political team they most trust to bring about the UK’s economic recovery and pull the country away from recession, it’s the Tory duo of David Cameron and George Osborne who score the highest among MidBritons, grabbing 33%*. Prime Minister and Labour leader Gordon Brown and Chancellor Alistair Darling lag way behind with 12%. While Lib Dems Nick Clegg and Vince Cable achieve 10%. As we edge ever closer towards the election, what’s clear is a sizeable number of MidBritons are undecided on who to vote for or if to vote at all, with 26% still ‘non committed’ to voting for any particular political party if an election was held today.

Interestingly Labour has increased in popularity since last quarter, from 9% to 15%*, which is at the highest level since this report began in 2007. The Tories electoral support stays steady at 34%*, but down from 47% 18 months ago. The Lib Dems have seen their share jump from 9% to 11%

It doesn’t make very convincing reading for Conservative leader David Cameron, who has still not sealed the deal with MidBritain, with the percentage of those who do not trust him growing since last quarter, from 32% to 41%*.

* Significant movement at 95% confidence

Base Q4 09: 2,081 MidBritons (surveyed Jan 2010)