"According to BRC-Opinium data, consumer expectations over the next three months the state of the economy improved to -32 in January, up from -38 in December. Consumers personal financial situation improved to -8 in January, up from -10 in December and their personal spending on retail fell to -6 in January, down from +6 in December. Consumers personal spending overall fell to +5 in January, down from +17 in December,"
"The new year brought hints of optimism, with the second consecutive improvement in consumer confidence in the economy and in people's own finances. This was the highest in five months, though similar to a year earlier. The contrasting sharp fall in spending expectations, both retail and overall, was expected as the festive season came to a close. This was most keenly felt by Millennials and Gen X, the generations most likely to have children living at home."
"With wages still struggling to keep pace with higher costs of living, many people feel as though neither their own finances nor the wider economy is moving forward. And if business costs continue to accelerate through 2026-from rising business rates to new regulatory burdens-then the risk is clear: inflation remains stubbornly high, and consumer confidence could falter once again."
Consumer expectations for the economy improved to -32 in January from -38 in December, while personal financial situation rose to -8 from -10. Retail spending expectations fell to -6 in January from +6 in December, and overall personal spending expectations dropped to +5 from +17. Personal saving increased to +2 from -9. The improvement represented the second consecutive rise in consumer confidence but coincided with a sharp post-festive fall in spending expectations, most pronounced among Millennials and Gen X. Ongoing wage stagnation and accelerating business costs risk keeping inflation high and undermining consumer confidence in 2026.
Read at London Business News | Londonlovesbusiness.com
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