BRC highlights cost-of-living impact on consumers

The British Retail Consortium (BRC) has released a fieldwork report highlighting consumer confidence in the next three months.

The data was gathered from a survey of 2,000 people and measured using the difference between the percentage of people who are positive about the economy, their spending, and their financial situation, and those who are negative.

According to the report, confidence in the economy was at -53 for April, which remains the same as March but continues to be the lowest on record.

Consumers also expect their personal financial situation to worsen, reflected in a net balance of -21, which is also the lowest on record.

However, personal spending on retail rose +5 in April, up from +2 in March.

Despite personal spend on retail rising, Helen Dickinson, chief executive of the BRC, noted that this was primarily on grocery spend, with consumers expected to cut costs in other areas.

“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,” Dickinson stated.

“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.”

Overall spending was also up by +15 in April from +13 in March, but this was driven by higher fuel and energy prices.