Consumer confidence ticks up but ‘little evidence’ of recovery
Consumer confidence rose by one point in March as Brits became more pessimistic about their own finances but more optimistic about the UK’s.
The overall effect was to push confidence up to -19 in March, from -20 in February and -21 in March last year. The index remained below its long-term average.
“If consumer confidence were a patient languishing in a hospital bed, a doctor would say there is little evidence of a recovery as yet. Where do we go from here?” Neil Bellamy, Consumer Insights Director, NIQ GfK, said.
Views on personal finances for the past year were slightly down from -7 to -9, while perceptions of the wider economy over the last 12 months and looking ahead a year are each up two points at -42 and -29, respectively.
“The current stability is to be welcomed but it won’t take much to upset the fragile consumer mood,” Bellamy added.
The Bank of England’s decision to hold interest rates yesterday was yet more evidence of a national ‘wait and see’ mode.
The BRC urged Chancellor Rachel Reeves to use her Spring Statement next week to boost consumer and business confidence.
Reeves’ October Budget was not received well by businesses, with particular concern about changes to inheritance tax and national insurance contributions.
Businesses across the board have warned that investment and hiring will fall due to higher wage bills, while some have said they will be forced to close as already-razor-thin margins become intenable.
But chief executive of the BRC Helen Dickinson said “without a much needed confidence boost from the government, the scale of new costs will see retail investment fall further, holding back future growth in the economy.”