Consumer confidence stabilised this month after February’s record low, says the BRC.
According to BRC-Opinium Consumer Sentiment data, consumer expectations over the next three months show the state of the economy improved slightly to -35 in March, up from -37 in February.
Their personal financial situation improved slightly to -10 in March, up from -11 in February. Their personal spending on retail rose to 0 in March, up from -5 in February.
Their personal spending overall rose to +11 in March, up from +4 in February. Their personal saving fell to -5 in March, down from -3 in February.
Within the categories, consumer expectations over the same period for spending on home and garden furniture are down -8%, improving from -10% the previous month, while DIY and home improvements were up by +1%, improving from -1%.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “This was coupled with an increase in spending expectations for the three months ahead, both for retail spending and spending more generally. Within retail, spending expectations for DIY and home improvements moved into positive territory for the first time.
“Across all categories, Gen Z (18-27) expected to spend more than the previous 3 months in every category, while Gen X (44-59) planned the biggest cuts to spending for most items, excluding food. Food and grocery spending expectations continued to outperform other categories, hitting a new high, though this could also be due to the expectation of rising prices.
“The Spring statement is an opportunity for government to inject some confidence back into the economy. In a matter of weeks, retailers grapple with the reality of billions in extra costs from the increases to employer National Insurance and the National Living Wage. This £5bn in new costs will give many no option but to push prices up.
“Food inflation is likely to hit 5% by the end of the year, and with further costs from the new packaging tax and implementation of the Employment Rights Bill, prices risk being pushed up further. Without a much needed confidence boost from government, the scale of new costs will see retail investment fall further, holding back future growth in the economy.”
