While consumer confidence in the economy crept up this month, it remains 24 pts lower than a year ago, says the latest BRC data.
According to BRC-Opinium data, consumer expectations over the next three months show the state of the economy improved slightly to -32 in August, up from -33 in July.
Their personal financial situation improved slightly to -6 in August, up from -7 in July. Their personal spending on retail rose slightly to +4 in August, up from +3 in July.
Their personal spending overall remained unchanged at +16 in August, the same as in July. Their personal saving rose to +2 in August, up from -3 in July.
Within the categories, consumer expectations over the same period for spending on home and garden furniture are down -11%, widening from -10% the previous month, while DIY and home improvements were down by -2%, widening from -1%.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Full-time workers were far more optimistic than those working part-time, unemployed, or retirees, reflecting that they were also the only group who expected their financial position to improve in the next three months. With prices rising, and food inflation predicted to hit 6% by the end of the year, households are expected to spend more on retail goods in the coming months, with groceries showing the biggest increase.
“Rising food inflation will make it harder to lift consumer confidence out of the doldrums. Belief in the economy has stayed stubbornly below -30 for six of the last seven months, a far cry from the net positive sentiment in July 2024.
“Consumers see rising prices, gap-toothed high streets, and reports of large businesses falling into administration. Much rides on the Chancellor’s plans for Retail, Hospitality and Leisure, and only a significant reduction in the business rates burden can bring about the levels of investment needed to reinvigorate Britain’s high streets and town centres.”
