British consumer confidence showed a slight improvement in December, according to the latest BRC-Opinium data, although the overall picture remains fragile and marked by significant uncertainty. Expectations for the state of the economy over the next three months improved slightly, reaching -38 points, up from -44 in November. This is a positive sign, but still significantly negative.
The perception of personal financial situation also improved: the index rose to -10 in December, compared to -16 the previous month, indicating reduced pressure on household budgets. On the consumption front, however, the picture appears more complex. Personal spending in retail fell to +6 points, down from +8 in November, confirming a cooling of purchasing intentions in stores.
In contrast, overall personal spending increased, rising to +17 in December from +14 the previous month, suggesting a reallocation of budgets toward other consumption items. At the same time, the propensity to save declined: the indicator fell to -9 points, compared to -5 in November, indicating that many families continue to dip into reserves to cover the cost of living.
According to Helen Dickinson, Chief Executive of the British Retail Consortium, the slight improvement in confidence is linked to a "less negative than expected" government budget for households. However, Dickinson emphasizes, the overall context remains gloomy: economic confidence has remained below the -30 threshold for eleven of the last twelve months.
Of particular concern is the trend in retail spending expectations, which have fallen for the third consecutive month, confirming the challenges the sector will face in the coming year. The BRC calls on the UK government to take more decisive action on the growth front, reducing bureaucracy and regulatory constraints to allow businesses to invest and create jobs.
From labor rights reform to regulations on unhealthy foods, the association believes it's crucial to assess the cumulative impact of new policies. The goal, Dickinson concludes, must be to avoid punitive regulations and ensure a sustainable regulatory framework for responsible companies, at a time when consumers and retailers remain under pressure.
