Consumer Sentiment Monitor - June 2024

Dr Kris Hamer | Director of Insight | British Retail Consortium

“The latest results reveal a slowdown in consumer optimism compared to recent months. Since the launch of our Consumer Sentiment Monitor in March, there had been a gradual improvement in consumer sentiment towards both the UK economy and personal finances. But as the General Election campaigning got underway, the latest survey results indicate a decline in positivity. Nonetheless, younger consumers remain more optimistic than older generations about economic improvement.

Attitudes towards personal finances have also deteriorated, with more consumers expecting their financial situation to worsen and fewer expecting improvements in the coming months. Overall debt levels have climbed, with 50% of consumers reporting some form of debt, with debt particularly pronounced among Millennials.

Consumer spending plans remain steady compared to last month. About half of consumers intend to spend the same, while over a quarter expect to spend more. And despite the economic pessimism, nearly half (48%) of consumers plan to take a holiday over the summer, with average spending projected at £1,464, increasing to £1,600 for Millennials.

Despite waning optimism, the consistency in spending plans indicates a resilient consumer base willing to maintain or increase expenditure. Retailers seeking to capitalise on this are offering value-driven promotions and personalised experiences that resonate with consumer needs.”

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 June 2024 reveal:

• Optimism towards the UK economy decreased in June following an uptick in May, as ‘will get better’ responses reduced and ‘will get worse’ responses saw an increase. Younger age groups are, once again, more optimistic than older generations.
• The number of people who are coping financially or are comfortable has remained the same since May, whereas the number who report to be struggling has increased slightly, with Gen X again most likely to report this.
• Positive expectations towards personal finances have slowed. People are now more likely to expect their personal finances to worsen rather than get better. Gen Zs again continue to show the most optimism across age groups.
• Levels of overall debt have risen to their highest level since March, with 50% reporting some form of debt.
• Spending plans over the next three months remain consistent with May, with most planning to spend the same. Just over a quarter plan to spend more and 19% plan to spend less.
• Saving expectations have slightly worsened since May. Less consumers expect to be able to save the same amount and more are expecting to save less.
• As with previous waves, non-essential spending priorities continue to be dining out, leisure travel and home improvements.