A rise in minimum wages has buoyed consumer sentiment, with the financial outlook for Gen Z customers in particular improving.
According to the latest BRC-Opinium data, consumer expectations over the past three months improved across all categories, driven predominantly by a jump in Gen Z consumer sentiment.
On the state of the economy, overall sentiment improved to -28 in June, up from -36 in May. Consumer outlook on personal financial situation also improved, up to -5 from -12 in May.
Sentiment on personal spending on retail jumped to +2 in June, up from 0 in May, while the outlook for personal spending overall jumped to +12 for the period, up from +10 the previous months.
Personal spending outlook also rose slightly to -4 for the month, compared to -5 in May.
British Retail Consortium chief executive Helen Dickinson said: “Consumer confidence improved for the second month in a row, reaching its highest level since Christmas, albeit still firmly in negative territory. Gen Z saw the biggest improvement, in both economic outlook and their expectations of their future finances, with younger generations remaining the most optimistic about the future.
“This rising optimism may also reflect the increase in minimum wage from April, with many younger people expected to have seen a significant uplift in their pay packet. Expectations of future spending – both in retail and more generally – rose slightly, with more spending on groceries planned over the coming months.
“The chancellor’s spending review laid out some big spending commitments, with the BRC welcoming its promises on skills, police and transport spending. However, with retail already paying a disproportionate tax burden compared to other industries, it is vital the government does not balance the books on the backs of retailers and their customers.
“While we welcome reforms to the broken business rates system, it is vital that no shop ends up paying more as a result. With retail accounting for 5% of the economy and paying 21% of the total business rates bill, levelling the playing field would unlock investment and jobs in high streets and town centres all over the country, supporting the UK’s economic growth.”
No comments yet