Confidence has risen by 3 points to -32 in the period March-June, up from -35 in March and -41 in December. Consumer outlook for the next three months has also improved, with only 27% of respondents thinking the situation will get worse compared to 34% last quarter, suggesting a bottoming out in consumer mindsets. This is due to less concern about savings and more optimism about property value.

The survey also revealed that consumers are being more careful with their money with fifty seven per cent claiming they pay more attention to the amount they spend than prior to the credit crunch. Thirty eight per cent have tried different brands as they seek out cheaper alternatives and brands who have ‘own-label’ products are benefiting, with 32 per cent increasing the amount of own label products they buy and one in ten trying own brand products for the first time.

With consumers hunting for the best price, one in three also admit to increasing the amount they look online for cheaper products. Forty nine per cent also say they’re paying more attention to offers advertised, with 51 per cent citing newspaper ads as the top source they use to find out about these offers (compared to TV ads at 39 per cent, internet ads 24 per cent, outdoor ads 14 per cent and radio ads 7 per cent).

Consumer Eye, a quarterly survey of over 3,000 readers provides an insight into consumer confidence, views on the economic outlook and current and future purchase intentions.

The research is aimed at providing News International and its customers with valuable insights that could help to develop advertiser’s communication approach to consumers. The size and frequency of Consumer Eye will provide one of the most comprehensive and up to date consumer surveys available to marketers.

Claire Myerscough, Business Intelligence Director News International said: “The Consumer Eye survey provides our customers with vital up-to-date information on consumer spending habits. With our focus on retail this quarter, our clients can better understand what factors are influencing purchasing decisions and loyalty – invaluable for planning campaigns.”