Consumer confidence in the UK weakened further in September, according to the latest BRC-Opinium survey, as high inflation continues to erode household optimism.
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Expectations for the state of the economy fell to -36, down from -32 in August. Confidence in respondents' personal financial situation slipped to -7 from -6, while overall spending expectations edged down to +14 from +16. Meanwhile, intentions for retail spending rose slightly to +5, up from +4. Savings expectations dropped to 0, compared with +2 the previous month.
Helen Dickinson, Chief Executive of the British Retail Consortium, commented:
"Confidence among Millennials (28-43) fell dramatically this month, as their expectations for both the economy and their own finances fell by double digits. The same generation also cut spending expectations for the months ahead, though this was largely offset by improvements for Gen Z, who remain the most optimistic. Worries about the Budget, combined with the increase in the cost of living, have eroded confidence, with little sign that inflation will come down soon.
"Inflation is now one of the biggest concerns among the public, with food inflation expected to rise to 6% by the end of the year. All eyes are now firmly locked on the 26 November, and what the Chancellor will announce. The Government can help mitigate inflation, improve the cost of living, and raise consumer confidence, by ensuring the upcoming business rates reforms offer a meaningful reduction to retail business rates, while ensuring no shop pays more as a result."
More information:
British Retail Consortium (BRC)
www.brc.org.uk
