According to BRC-Opinium, rising consumer confidence could give PM Andy Burnham a golden opportunity, with data showing improved consumer expectations across the next three months: the state of the economy measure improved to -28 in August, up from -36 in July; their personal financial situation outlook improved to -9 in August, up from -12 in July; their view on personal spending on retail rose to +8 in August, up from +1 in July; their personal spending take overall increased slightly to +15 in August, up from +13 in July; and their feelings on personal savings fell slightly to -5 in August, from -4 in July.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), says: “Consumer sentiment continued to rise with confidence in the economy hitting its highest level since the historical lows reached at the start of the Iran conflict.
"Expectations for personal finances saw a small improvement, driven by an optimistic Gen Z. This same generation also reported a bump in spending plans, as the stifling summer heatwaves are expected to give way to more shopping-friendly temperatures in much of the country.
“The Burnham administration is enjoying a honeymoon boost driven by less pessimism about the outlook, but maintaining that momentum will depend on whether the Government can ease the pressure on household budgets. Retailers compete fiercely to keep the cost of food and essentials down, yet mounting regulatory and tax burdens risk pushing prices higher.
"The Budget will be the acid test of this Government’s real commitment to growth – if the Government can reduce retail business costs, from energy bills to business rates, it will be ordinary households who feel the benefit. A Budget that backs retail and reduces costs is a pro-consumer Budget.”
