Consumer Sentiment Monitor - September 2024

Dr Kris Hamer | Director of Insight | British Retail Consortium

“With the new government’s initial warning in late August that the October budget is ‘going to be painful’ and the announcement that gas and electricity prices will be increasing, consumer pessimism has increased. 40% of people surveyed think the UK economy will continue to worsen over the next three months (compared to 33% last month) and half of respondents expect the budget to have a negative impact on their finances (compared to 10% who expect a positive impact). Resultingly, those that expect their personal financial situation to be worse over the next three months has increased from 21% in August to 27% this month.

Despite the negative outlook on the economy, people’s personal financial situations have improved slightly. Millennials expect to increase spending and plan to borrow more than any other group in order to cover their spending. Respondents overall are prioritising dining out and travel for leisure ahead of retail spending. In addition, since March 2024 there has been an increase in the number of people reporting that they have reduced the number of new products they have purchased, have purchased second-hand goods, or have repaired goods rather than replacing them.”

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. Our consumer tracker provides invaluable insights about changes in consumer sentiment.

Download the report for details.