British retail given a boost as consumer confidence grows in June

The British retail landscape across will be welcoming news this morning that consumer confidence has shown signs of recovery in June.

While BRC-Opinium data showing it has edged up, it is clear to see that roads to a full recovery remain fragile. The figures showed how the consumer view of the state of the economy improved to -43 in June, up from -48 in May.

This trend continued to their personal financial situation which improved to -15 in June, up from -16 in May. However, actual personal spending on retail fell to +5 in June, down from +7 in May.

The movement here is set against the backdrop of the conflict in the Middle East which has had a direct impact on consumer confidence.

Commenting on the data, Helen Dickinson, CEO of the BRC, said: “Consumer confidence ticked up again in June, with people feeling slightly less pessimistic about both the economy and their personal finances.”

She continued: “This coincided with a lull in the Middle East conflict at the start of June, easing concerns about energy prices and inflation. Although retail spending intentions dipped, this is likely due to lower inflation expectations, rather than weakening demand. It’s all to play for as fast-moving events in the Middle East and at home could shake consumer confidence or allow the improvements to gain momentum next month.

“Job prospects remain crucial. The loss of 66,000 retail jobs over the last year will do little to keep confidence moving in the right direction, particularly for young people and others struggling to take their first steps on the career ladder. Government policies that increase the costs and complexity of employing people, particularly the young, risk undermining both employment prospects and the recovery in consumer confidence.”