Consumer confidence fell in November, as expectations for the economy over the next three months nosedived.
Expectations over the state of the economy dropped to -44 in November, from -35 in October, according to the latest BRC-Opinium data.
Consumer expectations regarding their personal financial situation worsened to -16 from -11 the month before, while predictions for their personal spending on retail dropped to +8 from +14 in October.
Expectations for their overall personal spending dipped to +14 in November, from +18 the month prior, the trade association found.
However, predictions for their personal saving rose to -5 over the month, from -9 in October.
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BRC CEO Helen Dickinson said: “It has been a tumultuous month of Budget speculation and consumer confidence took a tumble.
“Strong hints by government earlier this month of income tax rises heightened public concern about their own finances and the wider economy, though government has since rowed back.
“With Christmas fast approaching, public expectations of spending – both on non-food retail goods and across wider spending – fell.”
The organisation’s boss continued: “Though expected spending on groceries did rise to its highest level since the survey began in 2024 as households prepare for Christmas during a period of high food price inflation.
“The Chancellor needs a few rabbits from the Budget hat next week to bolster weak consumer and business confidence – both essential for economic growth.
“Delivering on her promised business rates reforms and helping bring down the spiralling cost burden facing retailers will keep price rises in check and revive the fortunes of many struggling high streets.
“After decades of retail and hospitality paying the lion’s share of business rates, there is finally an opportunity to turn this broken tax into one that encourages local investment and supports local jobs.”
Earlier this month the BRC’s KPMG Retail Sales Monitor revealed that UK retail sales growth slowed in October, as shoppers held back discretionary purchases ahead of Black Friday.
The research found that total sales rose 1.6% year on year over the four weeks to 1 November, up on the 0.6% growth seen a year earlier but below the 12-month average of 2.1%.
