According to recent data from BRC-Opinium, consumer sentiment in the UK has significantly worsened in January 2025, with concerns about the economy and personal finances reaching new lows.
The research, conducted from 10 to 14 January, revealed a drop in key consumer indicators. Personal financial expectations fell to -4, down from -3 in December, while expectations about the state of the economy plummeted to -34 from -27. Consumer spending on retail also saw a notable decline, dropping from -3 in December to -9 in January, reflecting a tightening of wallets following the festive season.
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Helen Dickinson, Chief Executive of the British Retail Consortium, noted that with government warnings of tough times ahead, it is not surprising that public confidence has taken a hit. Older generations, particularly Baby Boomers (aged 60-78), are the most pessimistic, with two-thirds expecting the economy to worsen. In contrast, Gen Z (18-27) remains the only demographic group to anticipate an improvement in economic conditions. Despite a slight decline in personal financial outlook, older generations continue to show greater concern.
In addition to these consumer challenges, retailers are also facing significant financial pressures, including a £7bn increase in costs due to changes in the budget and new packaging levies. Retailers, already operating on tight margins, warn that price hikes and potential job cuts could follow. The BRC urges the government to ensure that the proposed business rates reforms do not result in higher bills for shops, which could further strain the retail sector.
More information:
British Retail Consortium
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www.brc.org.uk