UK consumer confidence improved marginally in August but remains “in the doldrums”, according to the BRC-Opinium Consumer Sentiment Monitor, with accelerating food inflation continuing to dampen sentiment.
The survey found that consumer expectations on the state of the economy improved slightly to -32 in August from -33 in July.
Outlook on personal finances also improved marginally to -6 from -7 last month and retail spending intent increased from +3 to +4. Consumer expectations for personal saving improved to +3 in August from -3 in July.
“While consumer confidence in the economy crept up this month, it remains 24 points lower than a year ago,” commented Helen Dickinson, Chief Executive of the BRC.
With prices on the rise and food inflation predicted to reach 6% by the end of the year spending expectations are on the increase, noted Dickinson.
“Rising food inflation will make it harder to lift consumer confidence out of the doldrums…Consumers see rising prices, gap-toothed high streets, and reports of large businesses falling into administration.”
Helen Dickinson, Chief Executive, British Retail Consortium
According the data, full-time workers were far more optimistic than part-time staff, the unemployed or retirees, reflecting that they were also the only group expecting their financial position to improve over the next three months.
Retail Rewired 
Leave a comment