BRC forecasts January ‘spending squeeze’ as consumer confidence declines

New data collated by the British Retail Consortium (BRC) and Opinium has pointed to concerning forecasts for the coming January, when the council’s chief executive, Helen Dickinson, said retailers should expect a “spending squeeze”.

Personal financial situations remained at -3 in December, the same as November, while the state of the economy worsened to -27 for the month, down from -19 in the month prior.

Personal spending on retail also dropped to -3, down from +3 in November, as did overall personal spending, which remained positive at +11, but fell from the previous +17.

Public confidence also took a “nosedive”, Dickinson stated, falling eight points to -27, thus creating a “widening gap between expectations of the economy and of people’s own finances, which remained unchanged”.

This contrasted by age, however, with 18 to 35 year olds remaining “considerably more upbeat than older generations”.

Dickinson added: “If these expectations are realised, retailers could find themselves facing a New Year spending squeeze just as they unveil their January sales.”

Her statement continued: “The weak spending intentions could pave the way for a challenging year for retailers, who face being buffeted by low consumer demand and seven billion pounds of new costs from the Budget set to hit the industry in 2025.”