The Middle East conflict continues to stoke consumer anxiety around inflation and the cost of living, says the British Retail Consortium (BRC).
According to BRC-Opinium data, consumer expectations over the next three months show the state of the economy remained at -53 in April, the same as in March. This remains the lowest on record.
Their personal financial situation worsened to -21 in April, down from -17 in March. This is the lowest on record. Their personal spending on retail rose to +5 in April, up from +2 in March.
Their personal spending overall rose to +15 in April, up from +13 in March. Their personal saving remained at -8 in April, the same as in March.
Within the categories, consumer expectations over the same period for spending on home and garden furniture are down -10%, widening from -7% the previous month, while DIY and home improvements were down at -1% from 0%.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “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.”
