Consumer confidence in the UK economy has shown a modest improvement in August, though it remains 24 points lower than a year ago, according to BRC-Opinium data. The overall economic outlook for the next three months improved slightly to -32, up from -33 in July. Personal financial assessments rose to -6, while retail spending expectations increased to +4. Personal overall spending remained unchanged at +16, and personal saving expectations improved to +2 from -3.
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Despite this slight uptick, spending intentions for home and garden furniture declined further to -11%, widening from -10% in July. DIY and home improvement spending also fell slightly to -2%, from -1% the previous month.
Helen Dickinson, Chief Executive of the British Retail Consortium, noted that full-time workers were the most optimistic, with expectations for improved finances, while part-time workers, unemployed individuals, and retirees remained cautious. She added that rising prices and projected 6% food inflation will challenge broader consumer confidence. Dickinson stressed the importance of government measures to reduce business rates, stating: 'Only a significant reduction in the business rates burden can bring about the levels of investment needed to reinvigorate Britain's high streets and town centres.'
The data indicates that while overall economic sentiment is stabilising, the furniture and home retail sector continues to face subdued consumer demand.
Source: www.bigfurnituregroup.com
