Consumer confidence improved for the second month in a row, driven majorly by Gen Z, shows recent industry data, partly reflecting the increase in minimum wage from April.
According to BRC-Opinium data, consumer expectations over the next three months of the state of the economy improved to -28 in June, up from -36 in May.
Consumer expectation over personal financial situation improved to -5 in June, up from -12 in May while that their personal spending on retail rose to +2 in June, up from 0 in May.
Overall, consumer expectation overt their personal spending overall rose to +12 in June, up from +10 in May while that over their personal saving rose slightly to -4 in June, up from -5 in May.
Helen Dickinson, Chief Executive of the British Retail Consortium, said, "Consumer confidence improved for the second month in a row, reaching its highest level since Christmas, albeit still firmly in negative territory.
"Gen Z saw the biggest improvement, in both economic outlook and their expectations of their future finances, with younger generations remaining the most optimistic about the future.
"This rising optimism may also reflect the increase in minimum wage from April, with many younger people expected to have seen a significant uplift in their pay packet. Expectations of future spending – both in retail and more generally – rose slightly, with more spending on groceries planned over the coming months.
"The Chancellor’s Spending Review laid out some big spending commitments, with the BRC welcoming its promises on skills, police and transport spending.
"However, with retail already paying a disproportionate tax burden compared to other industries, it is vital the Government does not balance the books on the backs of retailers and their customers. While we welcome reforms to the broken business rates system, it is vital that no shop ends up paying more as a result.
"With retail accounting for 5 per cent of the economy and paying 21 per cent of the total business rates bill, levelling the playing field would unlock investment and jobs in high streets and town centres all over the country, supporting the UK’s economic growth."
