The start of 2025 could be challenging for retailers as consumer confidence dips and spending intentions decline, according to new data from the British Retail Consortium (BRC) and Opinium.

The latest survey, conducted in mid-December, reveals a significant drop in public confidence in the economy. 

BRC chief executive Helen Dickinson said, “Public confidence in the state of the economy took a nosedive, falling 8pts to -27. This created a widening gap between expectations of the economy and of people’s own finances, which remained unchanged.”

Subscribe to Marketing Beat for free

Sign up here to get the latest agency-related news sent straight to your inbox each morning

She added, “Perceptions were heavily skewed by age, with 18 to 35 year olds considerably more upbeat than older generations on both questions. The public’s spending intentions – both in retail and beyond – dropped 6pts, with expectations of spending in nearly every retail category falling.” 

Dickinson warned of the potential impact on the retail sector. “If these expectations are realised, retailers could find themselves facing a New Year spending squeeze just as they unveil their January sales.”

Dickinson also highlighted the challenges facing retailers in the coming year: “The weak spending intentions could pave the way for a challenging year for retailers, who face being buffeted by low consumer demand and £7bn of new costs from the Budget set to hit the industry in 2025.”

The survey also revealed a generational divide in economic outlook, with 18 to 35-year-olds showing considerably more optimism than older age groups regarding both the economy and personal finances.