Consumer confidence in the economy has stumbled after four months of improvement, according to the British Retail Consortium (BRC)-Opinium Consumer Sentiment Monitor.
Expectations for the economy over the next three months worsened to minus 34 this month, down from minus 28 in August. Confidence in personal finances also declined, falling to minus 15 from minus nine a month earlier.
Sharp decline among women
BRC chief executive Helen Dickinson said the decline was much sharper among women, with households bracing for a sharp rise in energy costs this winter.
“Consumer confidence in the economy stumbled after four months of improvement, with a similar trend for sentiment around personal finances,” she said.
“This decline was much sharper among women and with households bracing for a sharp rise in energy costs this winter, and bills rising faster than shop prices, it is little surprise that expectations of retail spending fell, even as overall spending plateaued.”
Budget warning
Dickinson said consumers want the Government to prioritise bringing down the cost of living as the Budget approaches.
“Retail will play its part, but the Chancellor must not compound the triple blow from escalating employment costs, energy bills, and business rates, allowing retailers to focus on holding prices down,” she said.
“He should start by freezing the business rates multiplier, preventing yet another burdensome tax increase.”
