UK consumer confidence improves in March as Gen Z set to spend
The BRC believes that this increase is partly due to Gen Z (18-27), who are expected to spend more than the previous tree months in every category
UK consumer confidence improved slightly to -35 in March, up from -37 in February, the BRC has revealed.
According to the latest BRC-Opinium data, personal spending on retail rose to 0 in March, up from -5 in February. Meanwhile, personal spending overall rose to +11 in March, up from +4 in February.
The BRC believes that this increase is partly due to Gen Z (18-27), who are expected to spend more than the previous three months in every category, while Gen X (44-59) is planning the biggest cuts to spending for most items, excluding food.
The data also revealed that 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.
In addition, the personal financial situation index improved slightly to -10 in March, up from -11 in February, although the data shows that personal savings decreased to -5 in March, down from -3 in February.
Helen Dickinson, chief executive of the BRC, said: “Consumer confidence stabilised this month after February’s record low. 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.
“The Spring statement is an opportunity for the 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.”
She added: “Without a much needed confidence boost from the government, the scale of new costs will see retail investment fall further, holding back future growth in the economy.”
