Burnham’s baby boomers bolster consumer confidence
The coronation of Andy Burnham as Labour leader and, consequently, UK Prime Minister, is thought to have contributed to a positive feeling among baby boomers, delivering what is hoped to be some consistency after a destabilising few months for British politics.
However, commenting on positive sentiment among the British public relating to their personal retail spending, British Retail Consortium (BRC) CEO, Helen Dickinson, said the data should “not be mistaken for recovery.”
The BRC-Opinium data shows how consumers felt the state of the economy improved to -37 in July, up from -43 in June.
They also felt their personal financial situation improved to -12 in July, up from -15 in June.
However, their personal spending on retail fell to +1 in July, down from +5 in June, while overall personal spending also fell to +13 in July, down from +16 in June. Personal saving increased to -4 in July, up from -9 in June.
Mrs Dickinson explained: “Consumer confidence improved for the third month in a row, thanks in large part to a bump in sentiment among baby boomers. This rise may have been driven in part by Andy Burnham’s confirmation as the next PM, ending a period of political instability, as well as by a national feel-good factor of England progressing through the World Cup knockout stages.
“But we should not mistake this for recovery: only around one in ten expect the economy to improve in the future, and spending intentions remain more modest, though this may reflect lower inflation expectations, rather than tighter budgets.”
She added: “While the direction of travel is encouraging, confidence remains fragile, with cost-of-living pressures continuing to weigh heavily on many families. While retailers are doing all they can to keep prices affordable for customers, the Government can play its part to reduce the cost burden on the industry, giving retailers the breathing room to invest in lower prices for the future. By tackling spiralling business costs, Andy Burnham will be helping retailers to drive down the cost of living for everyone.”
