Consumer expectations for economy plunge to new low as people fear tough times ahead
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Consumer expectations for the UK economy have plummeted to a new low as the Government grapples with ongoing pressure over public finances, reveals a survey. The British Retail Consortium (BRC) Consumer Sentiment Monitor indicates that expectations for the state of the economy over the next three months have deteriorated to a figure of minus 34, down from minus 27 in December.
Generation Z – those aged 18 to 27 – remain the only group optimistic about the economy's future, while two-thirds of those aged between 60 and 78 expect it to worsen, according to the poll. Confidence in personal finances also took a hit, falling one point to minus four, with older generations remaining the most pessimistic.
Expectations of retail spending and wider spending both saw significant drops, although the BRC suggests much of this is likely due to the end of the festive period as people "tightened their belts for the new year ahead". BRC chief executive Helen Dickinson commented: "As the Government warns of tough times ahead, it is little surprise that the public have caught the January blues.".
"Consumer confidence in the economy fell to a new low, with concerns most pronounced among older generations. "On top of this challenging market backdrop, retailers are facing £7 billion in additional costs from the Budget and new packaging levy.". She cautioned that with retailers' tight margins leaving little scope to absorb more costs, many are warning of price rises and job cuts in the coming months.
