Consumer confidence stumbles amid warnings Budget must provide reassurance

Consumer confidence in the economy has stumbled after four months of improvement amid warnings the Budget must reassure struggling households.

Consumer expectations for the economy over the next three months worsened to minus 34 this month, down from minus 28 in August, according to the British Retail Consortium (BRC)-Opinium Consumer Sentiment Monitor.

Confidence in personal finances also worsened to minus 15, down from minus nine a month earlier.

Source: BRC

BRC chief executive Helen Dickinson said: “Consumer confidence in the economy stumbled after four months of improvement, with a similar trend for sentiment around personal finances.

“This decline was much sharper among women and with households bracing for a sharp rise in energy costs this winter, and bills rising faster than shop prices, it is little surprise that expectations of retail spending fell, even as overall spending plateaued.

Source: BRC

“With the Budget looming large, consumers want to see Government prioritise bringing down the cost of living. Retail will play its part, but the Chancellor must not compound the triple blow from escalating employment costs, energy bills, and business rates, allowing retailers to focus on holding prices down.

“He should start by freezing the business rates multiplier, preventing yet another burdensome tax increase.”