Credit, Collections & Insolvency News
Latest research by the British Retail Consortium (BRC) has shown that that the rise of inflation has shaken consumer confidence.
The data showed that consumer expectations over the next three months with the state of the economy worsening to -33 in July, down from -28 in June.
Personal financial situation worsened to -7 in July, down from -5 in June, with personal spending on retail rising to +3 in July, up from +2 in June. Personal spending overall rose to +16 in July, up from +12 in June, whilst personal saving rose slightly to -3 in July, up from -4 in June.
Helen Dickinson, Chief Executive of the British Retail Consortium, said “With the UK economy shrinking for the second consecutive month, it is little surprise that consumer confidence fell in July. Rising inflation, particularly for food, has put more pressure on personal finances, increasing the cost of living. This has caused spending expectations to rise, particularly for groceries, as households anticipate higher prices at the till.
“Despite fierce competition between retailers, retail inflation has risen steadily over the last nine months as a result of the Chancellor’s last Budget, which significantly increased employment costs. Further tax rises hitting the retail industry at the next Budget would likely fan the flames of inflation as retailers are forced to increase prices. The Chancellor has the opportunity to support households and high streets: the proposed business rates reforms could make the system fairer, provided government ensures that no store pays more as a result.”
