NEW - Consumer Sentiment Monitor - March 2024
Report Excerpt
Dr Kris Hamer | Director of Insight | British Retail Consortium
"Despite recent headlines suggesting a dampening of consumer sentiment concerning higher-value, more considered purchases, our research shows that the majority of UK consumers expect the economy to either stay the same or improve over the next three months. On the flip side, 2 in 5 respondents have a more pessimistic view, expecting the economy to worsen. Interestingly, Gen Z and Millennials are more optimistic than the older demographic groups in their outlook for the economy.
"When considering personal finances, 4 in 5 consumers describe themselves as comfortable or coping, while 1 in 5 said they are struggling with the cost of living. However, more had a pessimistic view of the outlook for their finances over the next three months, with 24% reporting their finances to worsen. However, expectations for spending are rising, with 29% planning to spend more over the next three months and 25% planning to save less. This is expected to be broad-based across retail, with most prioritising spending in hospitality and leisure before retail. Similarly, consumers who plan to cut back prioritise cutbacks in hospitality and leisure spending first.
Despite continuing cost-of-living pressures, sustainability remains high on consumers’ agendas, with 85% reporting sustainable behaviours. Boomers are most likely to limit single-use plastics and recycle and compost waste. Retailers that continue to develop sustainable practices will no doubt reap the rewards from these consumers as they look to engage more with ethical organisations."Overview
In partnership with Opinium, we have developed the BRC Consumer Sentiment Monitor which looks at consumer perceptions on the state of the economy, their personal finances, spending and saving expectations, and their 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 March 2024 reveal:
- Over half of UK consumers expect the UK economy to either stay the same or improve over the next 3 months.
- The vast majority of consumers (79%), describe their financial situation as either comfortable or say they are coping, compared with 19% who say they are struggling.
- Just under half (48%) have some consumer debt, with Millennials being the most likely group to say they have debt (63%).
- 29% of consumers expect to spend more over the next 3 months, while 1 in 5 expect to save more money.
- Non-essential spending priorities over the next 3 months are dining out, leisure travel and home improvements.
- 85% of consumers are engaging in some type of sustainable actions, with 1 in 5 having bought second-hand or refurbished goods.