With Christmas now around the corner, expectations of spending, particularly on retail goods, has risen sharply, states a retail expert citing latest industry data released today (Oct 23).
According to BRC-Opinium data, consumer expectations over the state of the economy slightly improved to -35 in October, up from -36 in September.
Their personal financial situation worsened to -11 in October, down from -7 in September, while their personal spending on retail rose to +14 in October, up from +5 in September.
Consumers' personal spending overall rose to +18 in October, up from +14 in September while their personal saving fell to -9 in October, down from 0 in September.
Commenting on the findings, Helen Dickinson, Chief Executive of the British Retail Consortium, said, "With Christmas now around the corner, expectations of spending, particularly on retail goods, rose sharply, with a corresponding drop in expected savings.
"This effect was pronounced among Millennials and Gen X, the generations most likely to have children living at home.
"Worries about the cost of Christmas, coupled with concerns about potential tax rises in the upcoming Budget are likely to have contributed to the drop in sentiment around personal finances, which fell into double digits for the first time since May.
"While the prospect of Christmas may have boosted expectations of grocery spending, the general rise in food prices has meant many families are struggling with the rising cost of living.
"Retailers are doing what they can to limit price rises, but high costs from the last Budget – including increased employment and packaging taxes – are still filtering through into inflation.
"The Budget is an important opportunity to relieve some of these cost pressures – particularly the disproportionate burden of business rates on the retail industry."