BRC notes ‘hints of optimism’ as consumer confidence improves

According to the latest BRC-Opinium data, consumers’ expectations of the state of the economy over the next three months improved to -32 in January, compared to -38 in December.

Consumers’ opinions on their own personal financial situation also improved in January, from -10 in December to -8 at the start of the year.

Personal spending on retail and spending overall fell, which is to be expected in January after Christmas, consumers’ personal savings also rose to +2 in January, up from -9 in December.

Chief executive of the BRC Helen Dickinson said: “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.

“January’s renewed optimism is encouraging, but it shows just how important it is for the government to build momentum and restore confidence to the levels seen in previous years. 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.”