Consumer confidence remains “weak” as Christmas approaches in a blow to retailers amid declining expectations for the wider economy, a survey suggests.
Consumer expectations for their personal finances over the next three months improved slightly to minus three in November, up from minus four last month, according to the British Retail Consortium (BRC)-Opinium Consumer Sentiment Monitor.
Expectations of personal retail spending remained positive, edging up a point to positive three, although this was “to be expected” as consumers prepared for the festive season, the BRC said.
Within this, expectations of spending on products other than food remained low, though expectations of eating out improved the most out of all categories, as people prepare for Christmas catch-ups with friends and relatives.
However, confidence in the state of the economy worsened by two points to minus 19.
BRC chief executive Helen Dickinson said: “There was little shift in consumer confidence since the Chancellor’s Budget, with many worried about the economy in the lead up to Christmas.
“While there was a very slight improvement in people’s expectations of their personal financial situation, this was offset by declining expectations of the wider economy.
“The last month clearly did little to shift the dial for households either positively or negatively, however, the same cannot be said for the retail industry.
“With over £7 billion in additional costs in 2025 resulting from the Budget, retailers will have little choice but to raise prices or reduce investment in jobs and shops.”
