With the UK economy shrinking for the second consecutive month, it is little surprise that consumer confidence fell in July, says the British Retail Consortium (BRC).
According to BRC-Opinium data, consumer expectations over the next three months show the state of the economy worsened to -33 in July, down from -28 in June.
Their personal financial situation worsened to -7 in July, down from -5 in June. Their personal spending on retail rose to +3 in July, up from +2 in June.
Their personal spending overall rose to +16 in July, up from +12 in June. Their personal saving rose slightly to -3 in July, up from -4 in June.
Within the categories, consumer expectations over the same period for spending on home and garden furniture are down -10%, improving from -13% the previous month, while DIY and home improvements were down by -1%, improving from -2%.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Rising inflation, particularly for food, has put more pressure on personal finances, increasing the cost of living. This has caused spending expectations to rise, particularly for groceries, as households anticipate higher prices at the till.
“Despite fierce competition between retailers, retail inflation has risen steadily over the last nine months as a result of the Chancellor’s last Budget, which significantly increased employment costs. Further tax rises hitting the retail industry at the next Budget would likely fan the flames of inflation as retailers are forced to increase prices.
“The Chancellor has the opportunity to support households and high streets: the proposed business rates reforms could make the system fairer, provided government ensures that no store pays more as a result.”
