Consumer confidence remained weak in December despite a modest improvement in expectations about the wider economy, according to new figures from the British Retail Consortium (BRC).
Data from the BRC-Opinium survey showed expectations for the state of the economy over the next three months rose to -38 in December, from -44 in November. Views on personal finances also improved, increasing to -10 from -16 over the same period.
However, expectations for retail spending softened further. Anticipated personal spending on retail fell to +6 in December, down from +8 in November, marking the third consecutive monthly decline.
By contrast, expectations for overall personal spending increased to +17, from +14 the previous month, while intentions to save weakened. Expectations for personal saving dropped to -9 in December, from -5 in November.
BRC CEO Helen Dickinson said: “With the Budget not as bad as feared for households, confidence saw a slight uptick in December. Yet the overall picture remains gloomy, with confidence in the economy stuck below -30 for eleven out of last twelve months. Expectations for retail spending continued to slide for the third consecutive month, proving challenges remain in the year ahead.
“Government needs to pull the levers of growth, tearing down red tape and bureaucracy to allow businesses to flourish and create more jobs. From the Employment Rights Bill to rules on less healthy foods, the Government must consider the cumulative impact of its policies on business, ensuring new regulations are workable and do not punish responsible businesses.”
