Period covered: August 24Published: August 29, 2024Read time: 1min

Consumer Sentiment Monitor

Consumer Sentiment Monitor - August 2024

Dr Kris Hamer | Director of Insight | British Retail Consortium

“Consumer sentiment towards the UK economy became more pessimistic in August, with a third of consumers anticipating a worsening economic outlook over the next three months, while only a quarter expect improvement. This negativity is particularly evident among older generations, who, given their higher likelihood of having substantial savings, are more concerned about the recent Bank of England decision to lower the base rate and its potential negative impact on their finances.

On a more encouraging note, consumers' views on their personal finances have remained relatively stable, with a slight increase in those feeling they are ‘coping’ and a decrease in those who say they are ‘struggling.’ This indicates that while concerns about the broader economy persist, many individuals are finding ways to manage their personal financial situations effectively. For retailers, this presents an opportunity to target products and services that cater to those looking to maintain or improve their financial resilience. The divergence between overall spending plans and anticipated retail spending is particularly telling, with consumers continuing to prioritise dining out and leisure travel over traditional retail purchases.

Additionally, the public disorder at the start of August influenced consumer behaviour, with three in ten indicating they have or will change their movements when commuting, shopping, or using public transport, particularly when visiting cities or towns outside their local area.”