UK: Trade war impacts consumer economy sentiments despite spending rising

Donald Trump’s now infamous ‘Liberation Day’ tariffs have had an impact on consumer expectations of the UK economy, new figures by the British Retail Consortium (BRC) and Opinium have suggested.

Consumer expectations for over the next three months have now dropped to -48 in April, down from -35 in March. Personal financial situations have also worsened to -16, another decrease on March’s -10.

In contrast, personal spending on retail rose to +3, up from a 0 in the month prior, while overall personal spending had a marginal drop from +11 to +10. Consumers’ personal savings rose slightly from -5 in March to -4 in April.

In a statement, Helen Dickinson, chief executive of the BRC, said it was “unsurprising that consumer expectations for the economy plummeted to a record low” on the back of changes to tariffs.

Dickinson continued: “Even with a pause on many of the US tariffs, business and consumer confidence remains fragile. The risk of higher global prices is an unwanted addition to the seven billion pounds in new costs hitting retailers this year from higher employer National Insurance, increased NLW, and a new packaging tax."