Consumer confidence in the UK has taken a significant hit amidst pessimism surrounding the country’s finances, as per a survey conducted for the British Retail Consortium (BRC). The poll, involving 2,000 UK adults for the BRC-Opinium Consumer Sentiment Monitor, revealed a sharp decline in expectations for personal finances over the next three months, dropping from a positive one to a negative six in just a month. Alongside this, confidence in the state of the economy also saw a notable deterioration, falling to minus 21 from minus eight in August.
However, despite these negative trends, there was a slight improvement in confidence regarding personal spending on retail, increasing by one point to minus eight. Conversely, confidence in personal savings took a hit, decreasing by five points to minus nine. The BRC, releasing the monitor to the public for the first time this month and planning to continue its publication, noted that consumer confidence seemed to be declining in anticipation of next month’s autumn Budget.
Helen Dickinson, the chief executive of BRC, expressed concerns over the significant drop in consumer confidence in September. She highlighted how negative publicity surrounding the UK’s financial situation had impacted confidence in the economic outlook, particularly among older age groups. Despite the overall decrease in confidence, expectations for future retail spending, although negative, did not seem to have been significantly affected, with many consumers expecting to reduce the amount they save instead.
The BRC’s findings paint a picture of a challenging period ahead for retailers, with consumer confidence wavering in the face of economic uncertainties. The impact of these trends on the retail sector remains to be seen as the country navigates through these turbulent times.