The British Retail Consortium (BRC) has credited Gen Z (18-27 year olds) and their spending habits for a stabilisation of consumer confidence.
According to BRC-Opinium data, consumers believe their personal financial situation improved slightly over the last month. Increasing from -11 in February to -10 in March. This could have been helped by the state of the economy improved slightly to -35 in March, up from -37 in February.
Consumer spending on retail rose to 0 in March, up from -5 in February, with their personal spending overall rising to +11 in March, up from +4 in February. However, personal savings took a hit, falling to -5 in March, down from -3 in February.
Looking at retail sectors, spending expectations for DIY and home improvements moved into positive territory for the first time. Food and grocery spending expectations continued to outperform other categories, hitting a new high, though this could also be due to the expectation of rising prices.
Across all categories, Gen Z expected to spend more than the previous three months in every category, while Gen X (44-59) planned the biggest cuts to spending for most items, excluding food.
Helen Dickinson, chief executive of the BRC, said: “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 £5bn 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.”
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