UK consumer confidence weakens in September, BRC survey shows

(Sharecast News) - The British Retail Consortium on Thursday called for the Autumn Budget to "bolster" consumer confidence in the UK after a survey found that sentiment deteriorated in September, reversing several months of improvement. The BRC-Opinium Consumer Sentiment Monitor showed expectations for the state of the economy over the next three months fell to -34 from -28 in August, snapping four consecutive months of improvement.

Expectations for personal finances also weakened sharply, to -15 from -9, while the measure for expected retail spending dropped to +5 from +8.

Overall spending expectations were unchanged at +15, however, while expectations for personal saving edged down to -7 from -5.

Among individual retail categories, consumers remained most willing to increase spending on food and groceries, with the net balance at +28 in September, although that was down from +30 in August. Expectations for fashion and clothing spending weakened to -13 from -11, while large electronics slipped to -12 from -11.

Helen Dickinson, chief executive of the BRC, said: "Consumer confidence in the economy stumbled after four months of improvement, with a similar trend for sentiment around personal finances."

She said the deterioration was "much sharper among women" and came as households prepared for higher winter energy costs.

"With the Budget looming large, consumers want to see Government prioritise bringing down the cost of living," Dickinson added, calling on the Chancellor to freeze the business rates multiplier and avoid further increases in retailers' costs.