Consumer Sentiment Monitor - May 2024
Report Excerpt
Dr Kris Hamer | Director of Insight | British Retail Consortium
“In May, there was a notable increase in consumer optimism about the UK economy compared to recent months. The percentage of consumers expecting an improvement over the next three months rose by 7%, while those anticipating a worsening economic situation decreased by the same percentage. Younger consumers, particularly Gen Z and Millennials, remain the most optimistic groups, with favourable responses from these groups increasing by 6% compared to April.
Expectations regarding personal finances also saw an improvement in May, with a 2% increase in consumers who expect their financial situation to improve, and a 3% decline in those expecting their finances to worsen over the coming months. The overall perception of debt levels showed little change, although there was a slight decline, with 45% of consumers reporting some form of debt, down from 47% in the previous month.
This month, we also surveyed consumers about their recent visits to physical retail stores. The results revealed that one in five consumers have reduced their store visits over the past 3 months. The main reasons cited were a general decrease in purchasing, the convenience of online shopping, and the ease of price comparison online. This trend aligns with findings from our Footfall Monitor, which indicates a consistent decline in retail footfall, with May experiencing the steepest drop since March 2021.”
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 May 2024 reveal:
- Optimism towards the UK economy shows a notable increase compared to recent months, with ‘will get better’ responses improving by 7% and ‘will get worse’ responses lowering by an equal 7%.
- Compared to April, slightly more report to be coping financially (+2%). Encouragingly, slightly less report to be struggling (-2%), who are still most likely to be those from Gen X.
- Expectations towards personal finances also show an improvement. ‘Will get better’ responses have increased by +2% and ‘will get worse’ responses have lessened by -3%.
- Perceptions of overall level of debt remain highly consistent with recent months, but are showing a slight decline. Nearly half (45%) hold some sort of debt, continuing to be most represented by Millennials (64%).
- When it comes to spending plans, there was little change from April, with most (52%) planning to spend the same, 26% planning to spend more and 17% planning to spend less money over the next 3 months.
- Over the next 3 months, non-essential spending priorities continue to be dining out, leisure travel and home improvements.