Consumer confidence improved for the second month in a row, reaching its highest level since Christmas, albeit still firmly in negative territory, says BRC data, while furniture still struggles.
According to BRC-Opinium data, consumer expectations over the next three months show the state of the economy improved to -28 in June, up from -36 in May.
Their personal financial situation improved to -5 in June, up from -12 in May. Their personal spending on retail rose to +2 in June, up from 0 in May.
Their personal spending overall rose to +12 in June, up from +10 in May. Their personal saving rose slightly to -4 in June, up from -5 in May.
Within the categories, consumer expectations over the same period for spending on home and garden furniture are down -13%, widening from -9% the previous month, while DIY and home improvements were down by -2%, widening from -1%.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Gen Z saw the biggest improvement, in both economic outlook and their expectations of their future finances, with younger generations remaining the most optimistic about the future. This rising optimism may also reflect the increase in minimum wage from April, with many younger people expected to have seen a significant uplift in their pay packet. Expectations of future spending – both in retail and more generally – rose slightly, with more spending on groceries planned over the coming months.
“The Chancellor’s Spending Review laid out some big spending commitments, with the BRC welcoming its promises on skills, police and transport spending. However, with retail already paying a disproportionate tax burden compared to other industries, it is vital the Government does not balance the books on the backs of retailers and their customers.
“While we welcome reforms to the broken business rates system, it is vital that no shop ends up paying more as a result. With retail accounting for 5% of the economy and paying 21% of the total business rates bill, levelling the playing field would unlock investment and jobs in high streets and town centres all over the country, supporting the UK’s economic growth.”
