BRC says UK consumers are feeling ‘gloomy’

Bah humbug! News from the British Retail Consortium (BRC) shows consumers “remaining gloomy” as we head towards Christmas week. Pessimism remains despite an Autumn Budget deemed not as bad as expected by many households while consumer confidence even saw a slight uptick in December.

However, it’s the “overall picture” that remains gloomy, with confidence in the economy stuck below -30 for 11 out of last 12 months and expectations for retail spending continuing to slide for the third consecutive month, the BRC noted.

But its December figures through BRC’s Opinium data survey, conducted across 2-5 December, showed views on the state of the economy improved to -38 in December, up from -44 in November; consumers’ personal financial situation improved to -10 this month, up from -16 in November; and personal spending overall rose to +17 in December, up from +14 last month.

But there were also two significant negative readings: consumer personal spending on retail fell marginally, to +6 in December, down from +8 in November; and  personal saving fell to -9 this month, down from -5 in November.

BRC chief executive Helen Dickinson said: “Expectations for retail spending continued to slide for the third consecutive month, proving challenges remain in the year ahead”.

She added: “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.”