Consumer confidence falling ahead of the Budget

The BRC Consumer Sentiment Monitor is being made public for the first time today, and will be published monthly henceforth

Fieldwork conducted on 10 – 13 September 2024

According to BRC-Opinium data, consumer expectations over the next three months of their:

• Personal financial situation worsened to -6 in September, down from +1 in August.
•  State of the economy worsened significantly to -21 in September, down from -8 in August.
•  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.
•  Personal saving fell to -9 in September, down from -4 in August.

Helen Dickinson, chief executive of the British Retail Consortium, said: “Retailers could face a turbulent few months as consumer confidence fell significantly in September. 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.

“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. The broken business rates system is currently holding back investment in jobs and communities across the retail industry. By introducing a Retail Rates Corrector – a 20% adjustment to retail property rates bills – the Chancellor could help drive investment in local high streets and communities, creating jobs and boosting consumer confidence.”