Consumer confidence in the United Kingdom is on a downward trend as the Autumn Budget approaches.
- A recent survey by the British Retail Consortium (BRC) highlights worsening consumer expectations for personal finances.
- Concerns about the UK’s economic situation have grown, as indicated by the latest BRC-Opinium data.
- While retail spending expectations slightly improved, overall personal spending has declined.
- The upcoming budget is seen as a crucial opportunity to restore confidence and stimulate investment.
In light of the forthcoming Autumn Budget, consumer confidence in the UK has seen a notable decline. A survey conducted by the British Retail Consortium (BRC) alongside Opinium revealed worsening consumer expectations regarding personal financial circumstances over the upcoming months. These expectations fell from a positive +1 in August to -6 in September, indicating a growing unease among consumers.
The state of the economy also contributed to this shift in sentiment, with figures worsening from -8 in August to -21 in September. This has been largely attributed to negative publicity surrounding the UK’s financial health, impacting confidence particularly among older demographics. Despite these concerns, it is noteworthy that expectations for retail spending showed a slight improvement, moving to -8 in September from the previous -9, suggesting a cautious optimism remains.
Elsewhere, there was a broader decline in personal spending, which dropped from +11 in August to +10 in September. Additionally, personal savings saw a decrease, falling from -4 in August to -9 in September. This trend underscores a broader pattern of economic uncertainty and financial caution among UK consumers.
Helen Dickinson, chief executive of the BRC, commented on the findings, stating that “retailers could face a turbulent few months as consumer confidence fell significantly in September.” She highlighted the negative impact of current economic narratives on consumer sentiment but noted that expectations for future retail spending were less adversely affected.
The upcoming budget presents a significant opportunity to inject confidence back into the economy. Helen Dickinson stressed the importance of addressing the broken business rates system, suggesting that a 20% adjustment to retail property rates bills could drive investment in local communities and high streets, potentially boosting job creation and consumer confidence.
The Autumn Budget is poised to play a pivotal role in reversing the declining trend in consumer confidence and economic outlook.
