According to the BRC's newly published Consumer Sentiment Monitor, conducted in partnership with Opinium, consumer confidence is falling ahead of November's Budget.
The consortium states that, regarding expectations over the next three months: personal financial situation worsened to -6 in September, down from +1 in August; the 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; and personal saving fell to -9 in September, down from -4 in August.
When asked about the likelihood of them spending on home and garden furniture over the next three months, 8% of the consumers surveyed said they would be spending more, and 26% spending less – a net score of -17, the same as is August.
BRC chief executive Helen Dickinson says: “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.”
