BRC-Opinium data shows that between 10-13 March, UK consumers expressed reduced confidence in their expectations for how the economy will perform in the next three months, reaching -53.
This sentiment is a significant decrease from February, which saw levels at -30, and represents the lowest rating BRC has had since 2024.
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Despite this, UK consumers reported a slight increase in their personal spending on retail, which was up +2 in March, an increase from 0 in February.
However, UK consumers also reported that their personal financial situation had worsened in March, falling -17 in March, down from -6 in February. This statistic was again the lowest since it began collecting this data in 2024.
“Consumer confidence collapsed as the Middle East conflict raised the prospect of higher inflation in the months ahead. As stock markets tumbled, confidence in both the economy and personal finances dropped to their lowest levels on record,” explained Helen Dickinson, chief executive at the BRC.
“The drop in confidence was most pronounced among the Boomer generation, who are most reliant on investment and pension funds. Meanwhile, spending expectations rose as shoppers expected to see rising energy costs reflected across the economy.”
When asked about their plans to purchase fashion and clothing items, 31% of UK consumers said they expect to spend less on this category in the coming three months than in the previous three.
Only 12% of UK consumers said they plan to increase their spending on fashion in the next three months.
Overall, net expectations of spending on fashion and clothing were -19, down from -14 in February.
Dickinson continued: “The current conflict has created a great deal of uncertainty in the economy. Inflation is expected to rise in the coming months. Just as the economy was beginning to turn a corner on inflation, the rise in global energy prices is particularly unwelcome for businesses and families.
“It is now vitally important that government policy does not exacerbate the situation, and bringing down the cost of living must be a top priority. From new employment laws to rising packaging taxes, Government must focus on how it can minimise unnecessary costs to retailers, thereby helping protect ordinary households from the rising cost of living.”
