AUS
NZ
UK
CA
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IND
Highlights:
- Sharp Decline in Consumer Sentiment: Personal financial expectations fell from +1 to -6, while economic confidence dropped to -21 from -8.
- Slight Retail Spending Improvement: Personal spending on retail saw a marginal improvement, but overall spending sentiment declined.
- Retail Sector Challenges: BRC’s Helen Dickinson warned of a difficult period ahead for retailers as consumer confidence remains low.
Consumer confidence in the UK took a sharp downturn in September, as reported by the British Retail Consortium’s (BRC) Consumer Sentiment Monitor. The survey highlighted growing concerns over personal finances and the overall economic outlook as the public anticipates the upcoming October Budget from Chancellor Rachel Reeves.
The sentiment surrounding personal financial expectations dropped significantly, falling to -6 in September from +1 in August. This marked a notable decline, reflecting increased caution among UK households about their financial situation in the short term.
Similarly, broader economic confidence saw a severe dip, with expectations for the state of the economy dropping to -21 from -8 over the same period. The decline suggests heightened anxiety over economic stability in the months ahead, with negative sentiments becoming more pronounced.
Despite these downbeat trends, the report noted a slight improvement in personal spending on retail, which moved up marginally to -8 from -9. However, overall spending sentiment still showed a decline, slipping to +10 from +11. Savings expectations also worsened, falling further into negative territory at -9, compared to -4 in August.
Helen Dickinson, Chief Executive of the BRC, warned of challenging times ahead for UK retailers as consumer confidence falters. "Retailers could face a turbulent few months as consumer confidence fell significantly in September," she said.
Dickinson noted that ongoing negative news about the UK’s economic health appears to have eroded confidence, particularly among older generations, who may be more sensitive to shifts in economic outlook and government policy.
However, despite the broader negative trend, she pointed out that retail spending expectations, while still negative, had not yet shown a substantial adverse impact. Instead, the data suggested that many consumers might opt to cut back on savings before reducing their spending on retail, signaling a shift in priorities amidst growing uncertainty.
