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The British Retail Consortium (BRC) has said consumer confidence is “stuck in the doldrums”, as the trade body reported consumers’ personal financial situation fell to its lowest level on record.
Based on fieldwork conducted together with market research agency Opnium between 7 and 10 April, the organisation said shoppers’ personal financial situation stooped down to -21 points, down from -17 in March.
The state of the economy remained flat at -53 in April, also an all-time low score.
Meanwhile, personal spending on retail reached +5 in April, up from +2 in March, while total personal spending this month rose to +15, up from +13 the month prior.
The personal savings barometer did not change this month, staying at -8.
Helen Dickinson, chief executive of the BRC, said: “The Middle East conflict continues to stoke consumer anxiety around inflation and the cost of living. Amid a volatile geopolitical situation, households are expecting to see their pay packets squeezed by rising petrol, domestic energy, and food prices. Expected retail spending rose, but this was driven entirely by grocery spend, with most consumers expecting to rein in spending in other areas.
“The longer volatility drags on, the more uncertainty it creates in the economy. Businesses are battered by higher energy costs while also grappling with the growing burden of domestic policy pressures. From new packaging taxes to incoming employment and health regulations, the government has levers it can pull to limit the inflationary fallout. Taking early, decisive action would help shield consumers from a spike in the cost of living they simply can’t afford.”
