As the festive season approaches, consumer confidence remains fragile, influenced by economic concerns.
- Consumer expectations for personal financial situations improved slightly in November compared to October.
- Spending plans for retail showed a modest increase, indicating cautious optimism among consumers.
- Overall personal spending and saving levels stayed steady, reflecting economic uncertainty.
- Anticipations for the economic situation worsened, pointing to growing apprehension.
Consumer confidence remains weak as Christmas approaches, largely due to concerns about the economy, as revealed by the latest survey from the British Retail Consortium (BRC) conducted between 12 and 15 November. The survey highlighted that consumer expectations for personal financial situations in the next three months improved marginally to a figure of -3 in November, an uptick from -4 in October.
Consumers’ plans for retail spending experienced a slight rise, moving to 3 in November from 2 in October. However, on a broader scale, personal spending and saving remained constant at 17 and -9, respectively, indicating an overall cautious approach to financial management.
Conversely, the public’s expectations concerning the state of the national economy showed a decline, dropping to -19 in November from -17 in October. This suggests that while individual financial optimism may have seen slight improvement, apprehensions about the wider economic landscape are increasing.
Helen Dickinson, the CEO of BRC, commented, “There was little shift in consumer confidence since the Chancellor’s Budget, with many worried about the economy in the lead up to Christmas.” She pointed out that households felt little positive or negative change; however, the retail industry faces significant challenges.
With over £7 billion in additional costs anticipated in 2025 due to the Budget, retailers face difficult choices such as raising prices or cutting investments in jobs and shops. Over 80 retail leaders have expressed these concerns directly to the Chancellor, emphasising that without changes to the business rates system, job losses and higher prices are inevitable.
As Christmas approaches, the economy’s uncertain outlook continues to weigh on consumer confidence, affecting retail spending and sentiment.
