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Perception driving downturn in the UK economy, according to new Experian report
Nottingham, UK, 2 March 2009 - New analysis published today by Experian®, the global information services company, suggests that perception and recessionary behaviours amongst UK consumers and businesses are helping to drive down the economy.
The Experian Insight Report draws on the company’s consumer and business data insight to identify significant new trends emerging in the UK economy. The report suggests that consumer behaviour is out of synch with the real state of the economy – fuelled by a ‘feel bad factor’ based on perceived threats to personal and financial wellbeing. From the business perspective, fewer companies are starting up, in part due to a fear of failure and lack of confidence as raw business failures increase. However, Experian’s analysis shows that while business failure rates have been rising since 2007, measured against the growth in the number of businesses, the failure rate has been flat for ten years and a focus on start-ups is needed to prevent an increase in the future.
The report’s key insights reveal that:
The UK consumer landscape:
The UK business landscape:
Charlotte Hogg, Managing Director of Experian UK & Ireland, commented:
“In today’s ‘always on’ society, the volume of 24/7 information at consumers’ finger tips means that perception and belief are far more important to the real activity of the economy than they ever were before. Whilst people are better informed now than they were during the last recession in the early Nineties, it does not necessarily equate to them feeling better. In fact, our analysis reveals that we are seeing consumers react altogether more dramatically to the state of the economy and certainly in unexpected quarters.
“For consumers, perception is important and changing the psychology of this recession is as important as traditional policy tools. Equally, organisations need a clear picture of the state of their business and to tie into changing consumer behaviours. Hard data is critical to distinguishing between perception and reality, and will play a critical role supporting businesses and consumers through the next three months and beyond.”