Consumer confidence weakened in October 

British consumers’ confidence in the state of the economy fell from minus 32 to minus 40 this October, according to the British Retail Consortium’s (BRC) consumer index, marking the third consecutive month of deteriorating sentiment. 

Expectations for personal finances also fell from minus 15 to minus 18 this month, with expectations for personal spending on retail rising to 15 in October, from five in September.

The state of the economy worsened to -40 in October, down from -34 in September.

Helen Dickinson, chief executive of the British Retail Consortium, said: “Consumer confidence in the economy dropped for the third consecutive month against a backdrop of rising inflation and ongoing geopolitical tensions. Meanwhile, sentiment about personal finances fell to the second-lowest level on record, as confidence among Gen X and Boomers tumbled after the announcements around pensions. With the festive period now falling within the three-month window, there were significant rises in spending expectations, though concerns around inflation may also be contributing to this.

“Households everywhere will be looking to the chancellor to tackle the cost of living challenge at next week’s Budget. Retailers have been doing everything they can to limit price rises, but with the industry now paying 20% more in taxes than two years ago, there is no more room for manoeuvre. Government must act on the tsunami of costs that have hit the industry, from employer National Insurance Contributions to business rates. A little breathing room for retailers at the Budget can mean a lot of breathing room for households.”