High inflation weighing on consumer confidence

Latest research by the British Retail Consortium (BRC) has shown that high inflation is weighing on consumer confidence.

The data showed that state of the economy worsened to -36 in September, down from -32 in August with the personal financial situation worsened to -7 in September, down from -6 in August.

Personal spending on retail rose slightly to +5 in September, up from +4 in August whils personal spending overall fell slightly to +14 in September, down from +16 in August.

Helen Dickinson, Chief Executive of the British Retail Consortium, said “Confidence among Millennials (28-43) fell dramatically this month, as their expectations for both the economy and their own finances fell by double digits. The same generation also cut spending expectations for the months ahead, though this was largely offset by improvements for Gen Z, who remain the most optimistic. Worries about the Budget, combined with the increase in the cost of living, have eroded confidence, with little sign that inflation will come down soon.

“Inflation is now one of the biggest concerns among the public, with food inflation expected to rise to 6% by the end of the year. All eyes are now firmly locked on the 26 November, and what the Chancellor will announce. The Government can help mitigate inflation, improve the cost of living, and raise consumer confidence, by ensuring the upcoming business rates reforms offer a meaningful reduction to retail business rates, while ensuring no shop pays more as a result.”