Consumer confidence is subdued as the key festive shopping season approaches, with households concerned about the economy following last month’s Budget, suggests new data from the British Retail Consortium (BRC) and Opinium.
BRC’s Consumer Sentiment Monitor, which surveyed people between 12 and 15 November, showed a slight improvement in personal financial expectations, from -4 to -3. However, expectations for the wider economy worsened to -19 compared to -17 the previous month.
Meanwhile, personal spending on retail saw a small increase, rising to +3 from +2 in October. Overall personal spending remained stable at +17, and personal saving expectations remained unchanged at -9.
“There was little shift in consumer confidence since the Chancellor’s Budget, with many worried about the economy in the lead-up to Christmas,” Helen Dickinson, Chief Executive of the BRC.
“While there was a very slight improvement in people’s expectations of their personal financial situation, this was offset by declining expectations of the wider economy. Personal retail spending remained positive, edging up slightly, though this was to be expected as consumers prepare for the festive season.
"Within this, non-food spending expectations remained low, though expectations of spending on eating out improved the most out of all categories, as people prepare for Christmas catchups with friends and relatives.”
She added: “The last month clearly did little to shift the dial for households either positively or negatively, however, the same cannot be said for the retail industry. With over £7bn in additional costs in 2025 resulting from the Budget, retailers will have little choice but to raise prices or reduce investment in jobs and shops.
"To mitigate this, the government must ensure that changes to the business rates system, planned for 2026, bring about a meaningful reduction in bills for all retailers.”
