Consumer confidence remained near record lows in April with households increasingly pessimistic about both the economy and their personal finances.
The latest data from the British Retail Consortium shows expectations for the state of the economy held at -53, matching March’s reading and marking the lowest level on record.
Sentiment around personal finances deteriorated further, falling to -21 from -17 the previous month – also a record low.
Despite this, consumers signalled a modest increase in spending intentions. Retail spending expectations rose to +5, while overall spending increased to +15, suggesting households are continuing to spend, albeit selectively.
FINANCIAL BUFFERS
However, saving intentions remained negative at -8, indicating limited capacity for households to build financial buffers.
The figures point to a cautious consumer backdrop, with spending largely driven by essentials rather than discretionary purchases.
Helen Dickinson, Chief Executive Officer at the British Retail Consortium, says: “The Middle East conflict continues to stoke consumer anxiety around inflation and the cost of living.
“Amid a volatile geopolitical situation, households are expecting to see their pay packets squeezed by rising petrol, domestic energy, and food prices. Expected retail spending rose, but this was driven entirely by grocery spend, with most consumers expecting to rein in spending in other areas.
“The longer volatility drags on, the more uncertainty it creates in the economy. Businesses are battered by higher energy costs while also grappling with the growing burden of domestic policy pressures.
“From new packaging taxes to incoming employment and health regulations, the government has levers it can pull to limit the inflationary fallout. Taking early, decisive action would help shield consumers from a spike in the cost of living they simply can’t afford.”
The data underscores the fragile backdrop facing the UK housing market, where affordability pressures and weak confidence continue to weigh on buyer demand.
