Government negativity surrounding the UK’s finances, with continuing talk of tax increases ahead of the Budget on 30 October, is impacting on consumer confidence and deterring spending, according to BRC-Opinium data. Nevertheless, future retail spending does not appear to be affected.
According to the findings, consumer expectations for their personal financial situation over the next three months worsened to -6 in September, down from +1 in August. However, personal spending on retail improved slightly to -8 in September, up from -9 in August. Personal spending overall fell to +10 in September, down from +11 in August, while personal saving fell to -9 in September, down from -4 in August.
“Retailers could face a turbulent few months as consumer confidence fell significantly in September,” states Helen Dickinson, chief executive of the British Retail Consortium (BRC). “Negative publicity surrounding the state of the UK’s finances appears to have damaged confidence in the economic outlook, particularly among older generations. Despite this, expectations for future retail spending, while negative, did not yet appear to have been adversely affected,with many consumers expecting to reduce the amount they save instead.”
She adds: “The Budget is a key opportunity to inject some confidence back into the economy, boosting spending and helping to foster much needed investment by businesses.
Top: According to BRC-Opinium data, consumer confidence fell in September.
