Consumer confidence improved for the third month in a row, thanks in large part to a bump in sentiment among baby boomers, says the latest British Retail Consortium (BRC) data.
According to BRC-Opinium data, consumer expectations over the next three months show the state of the economy improved to -37 in July, up from -43 in June.
Their personal financial situation improved to -12 in July, up from -15 in June. Their personal spending on retail fell to +1 in July, down from +5 in June.
Their personal spending overall fell to +13 in July, down from +16 in June. Their personal saving increased to -4 in July, up from -9 in June.
Within the categories, consumer expectations over the same period for spending on home and garden furniture are down -11, narrowing from -12 the previous month, while DIY and home improvements were down at -1, also narrowing from -3 last month.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “This rise may have been driven in part by Andy Burnham’s confirmation as the next PM, ending a period of political instability, as well as by a national feel-good factor of England progressing through the World Cup knockout stages. But we should not mistake this for recovery: only around one in ten expect the economy to improve in the future, and spending intentions remain more modest, though this may reflect lower inflation expectations, rather than tighter budgets.
“While the direction of travel is encouraging, confidence remains fragile, with cost-of-living pressures continuing to weigh heavily on many families. While retailers are doing all they can to keep prices affordable for customers, the Government can play its part to reduce the cost burden on the industry, giving retailers the breathing room to invest in lower prices for the future. By tackling spiralling business costs, Andy Burnham will be helping retailers to drive down the cost of living for everyone.”
