Consumer confidence stabilises as Gen Z prepares to spend

Consumer confidence has stabilised after February’s record low amid predictions by Gen Z that they are ready to increase their spending, figures show.

Consumer expectations for the state of the economy over the next three months improved slightly, but remains at minus 35, according to British Retail Consortium (BRC)-Opinium data.

Expectations for consumers’ personal financial situations also improved, albeit to minus 10, while confidence in personal spending on retail rose to a relatively healthy zero, up from minus five last month, driven by plans for DIY and home improvements.

Gen Z – those aged 18 to 27 – expect to spend more than the previous three months in every category, while Gen X – 44 to 59 year olds – are planning the biggest cuts to spending for most items except for food, the poll found.

“The spring statement is an opportunity for Government to inject some confidence back into the economy.

“In a matter of weeks, retailers grapple with the reality of billions in extra costs from the increases to employer national insurance and the national living wage.

“This £5 billion in new costs will give many no option but to push prices up. Food inflation is likely to hit 5% by the end of the year, and with further costs from the new packaging tax and implementation of the Employment Rights Bill, prices risk being pushed up further.

“Without a much-needed confidence boost from Government, the scale of new costs will see retail investment fall further, holding back future growth in the economy.”

Opinium surveyed 2,000 UK adults between March 4-7.