Consumer sentiment picks up on Middle East peace hopes - BRC

(Sharecast News) - British consumer sentiment improved in June, a survey showed on Thursday, on renewed hopes for a lasting peace deal in the Middle East. According to the British Retail Consortium's latest consumer sentiment monitor, respondents were more positive about both the economy and their own financial situation.

The state of the economy index rose to -43 from -48 in June, while the index for the personal financial situation rose one point to -15. Spending on retail softened two points to 5, but overall spending intentions rose one point to 16 while saving fell to -9 from -8.

Helen Dickinson, chief executive of the BRC, said the rise in consumer in confidence coincided with a lull in the Middle East conflict at the start of June, which had eased concerns about higher energy prices and inflation.

She continued: "Although retail spending intentions dipped, this is likely due to lower inflation expectations, rather than weakening demand. It's all to play for as fast-moving events in the Middle East and at home could shake consumer confidence or allow the improvements to gain momentum next month.

"Job prospects remain crucial."

Washington and Tehran agreed a 14-point memorandum of understanding earlier in June, under which they will cease fighting and reopen the Strait of Hormuz while a permanent peace deal is negotiated. Although tensions remain high, energy prices have fallen sharply in response.

Fieldwork was conducted by Opinium on behalf of the BRC between 3 and 5 June. A sample of 2,000 adults were surveyed.