Consumer confidence improved in June as shoppers became less pessimistic about both the economy and their personal finances, according to the latest BRC Opinium data.
Consumer expectations for the state of the economy improved from -48 in May to -43 in June, while expectations around personal finances also edged up from -16 to -15.
However, while overall spending intentions increased from +15 to +16, planned spending on retail purchases slipped from +7 to +5, suggesting shoppers may still be taking a cautious approach to discretionary purchases.
The amount of consumers worried the conflict in the Middle East could increase food prices fell from 82% to 79%, while concerns over rising energy bills declined from 83% to 80%.
Helen Dickinson, Chief Executive of the British Retail Consortium, said:
“Consumer confidence ticked up again in June, with people feeling slightly less pessimistic about both the economy and their personal finances. This coincided with a lull in the Middle East conflict at the start of June, easing concerns about energy prices and inflation. Although retail spending intentions dipped, this is likely due to lower inflation expectations, rather than weakening demand. It’s all to play for as fast moving events in the Middle East and at home could shake consumer confidence or allow the improvements to gain momentum next month.”
Dickinson also warned that employment prospects remain a key factor in maintaining consumer confidence, particularly among younger workers entering the labour market.
“Job prospects remain crucial. The loss of 66,000 retail jobs over the last year will do little to keep confidence moving in the right direction, particularly for young people and others struggling to take their first steps on the career ladder.
“Government policies that increase the costs and complexity of employing people, particularly the young, risk undermining both employment prospects and the recovery in consumer confidence.”
