UK consumer confidence slides ahead of Budget - BRC

25th Sep 2024 07:37

(Sharecast News) - Consumer confidence fell in September, a well-regarded survey showed on Thursday, as people waited anxiously for next month's Budget.

According to the British Retail Consortium's latest consumer sentiment monitor - which asks about expectations for the coming three months - concerns about both the economy and personal finances have worsened.

The personal financial situation fell to -6 from 1 in August, while the state of the economy slumped to -21 in September from -8.

Personal spending on retail edged up one point to -8. But personal spending overall was a point lower at 10.

The BRC attributed the shaken consumer confidence to the upcoming Budget, with new chancellor Rachel Reeves due to address Parliament on 30 October.

The government has repeatedly warned of a £22bn "black hole" in the public finances. In August, shortly after taking office, prime minister Kier Starmer said the Budget was going to be "painful".

Helen Dickinson, chief executive of the BRC, said: "Retailers could face a turbulent few months. Negative publicity surrounding the state of the UK's finances appears to have damaged confidence in the economic outlook, particularly among older generations.

"The Budget is a key opportunity to inject some confidence back into the economy, boosting spending and helping to foster much needed investment in businesses."

The Opinium survey of 2,000 UK adults was carried between 10 and 13 September. Both Reeves and Starmer looked to adopt a more positive tone at conference this week, after the survey was carried out.