Consumer confidence in the UK has shown signs of stabilisation, with Generation Z (Gen Z) leading the way in anticipated spending increases, according to recent data from the British Retail Consortium (BRC) and Opinium.
The BRC-Opinium Consumer Sentiment Monitor for March 2025 indicates a modest uptick in consumer expectations regarding the economy.
The perception of the economy’s state over the next three months improved slightly to -35 in March, up from -37 in February. Personal financial situation expectations also saw a minor rise, moving to -10 from -11 in the same period.
Gen Z’s positive spending intentions
A notable finding from the survey is the positive shift in spending expectations among Gen Z consumers, aged 18 to 27. This demographic plans to increase expenditure across various categories in the upcoming months.
In contrast, individuals aged 44 to 59 are planning spending reductions in most areas, excluding food.
Overall retail spending expectations rose to 0 in March from -5 in February, while general personal spending expectations increased to +11 from +4.
Anticipation ahead of the Spring Statement
The stabilisation in consumer confidence comes ahead of the Chancellor of the Exchequer Rachel Reeves’s Spring Statement, scheduled for 26 March 2025.
Reports suggest that the Chancellor is expected to announce significant public spending cuts to address the budget deficit, opting not to raise taxes. These measures may include reductions in departmental budgets and welfare spending.
The retail sector is closely monitoring these developments, as potential policy changes could impact consumer spending power and overall economic confidence in the coming months.
