Consumer confidence remained subdued as the festive season approaches as households expressed mixed expectations about their finances and the wider economy, according to the British Retail Consortium (BRC).
The trade body‘s Consumer Sentiment Monitor for the month, collected from 2,000 UK adults between 12 and 15 November, recordeded a slight improvement in personal financial expectations but continued pessimism about the state of the economy.
The report found that consumer expectations for their personal financial situation improved marginally to -3 in November, up from -4 in October.
However, expectations for the wider economy worsened slightly, with a score of -19 in November, compared to -17 the previous month.
Despite these concerns, personal spending on retail saw a small increase, rising to +3 in November from +2 in October. Overall personal spending remained stable at +17, consistent with October’s findings. Personal saving expectations remained unchanged at -9.
BRC CEO Helen Dickinson said: “There was little shift in consumer confidence since the Chancellor’s Budget, with many worried about the economy in the lead up to Christmas. 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.
“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, government must ensure that changes to the business rates system, planned for 2026, bring about a meaningful reduction in bills for all retailers.”
Earlier this week, the BRC warned that food inflation could soon be on the rise due to rising costs.
Over 70 retailers including Tesco, Sainsbury’s, Next, Amazon, and Boots wrote to Reeves last week, cautioning that the “sheer scale” of the new costs on companies would increase inflation as “it will not be possible to absorb such significant cost increases”.
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