Consumer Sentiment Monitor - April 2024
Report Excerpt
Dr Kris Hamer | Director of Insight | British Retail Consortium
“Consumer sentiment in the UK market showed a promising trend in April, with a slight increase in optimism compared to the previous month. Most survey respondents expressed their expectation for the economy to either improve or maintain its current state over the next three months. Notably, younger consumers (Gen Z & Millennials) emerged as the most optimistic group, with 1 in 5 anticipating a positive economic shift in the coming months.
Compared with March, we observed a slight increase in consumers who described their finances as being comfortable. However, on the flip side, there was a decrease in respondents who described their financial situation as coping. There was no change in the percentage of consumers planning on reducing their spending this month, with reducing leisure spending, buying cheaper products and purchasing less remaining the top behaviours for this group. Consumer non-essential spending priorities remained aligned with last month, with dining out, leisure, travel and home improvements as the key spending priorities ahead.
This month, we also asked consumers for their thoughts on the most important issues facing the country. Almost two-thirds of respondents (64%) said the NHS & health is a key issue, followed by the economy (41%) and immigration (30%). Notably, Gen Z (18-27 years old) were most likely to consider housing a key issue, while Boomers are more concerned about immigration than the other groups.”
Overview
The BRC Consumer Sentiment Monitor looks at consumer perceptions on the state of the economy, personal finances, spending and saving expectations, and engagement in sustainability behaviours. Over time, our intention is to create a consumer tracker, providing invaluable insights about changes in consumer sentiment.
The results for April 2024 reveal:
- Most consumers continue to say they expect the UK economy will get better (increasing by +3%) or stay the same (+2%) over the next 3 months.
- April saw a slight increase (+3%) in consumers describing their financial situation as comfortable (42%). Slightly less people describe their situation as coping (38% down -2%).
- 22% of respondents expect their finances to improve over the next 3 months, with overall sentiment about personal finances remaining consistent with last month.
- Close to half (47%) of consumers are in debt, whilst a comparable proportion (49%) have no debt. More than half (54%) plan to keep their borrowing levels the same as usual over the next 3 months, whilst 21% will borrow less and 10% more.
- When it comes to saving intentions over the next 3 months, results show that slightly less people are planning to save more, with an increase in those planning to save the same as usual.
- Amongst those planning to reduce their outgoings, buying cheaper products, reducing leisure spending and purchasing less remain top of consumers’ minds between March and April.
- Over the next 3 months, consumers continue to prioritise dining out, leisure travel and home improvements for their non-essential spending priorities.
- This month we also asked consumers their thoughts on the most important issues facing the country right now. Almost two-thirds of respondents (64%) said the NHS is a key issue, followed by the economy (41%) and immigration (30%).