Consumer confidence edged higher in December after a better-than-expected budget, although the overall outlook remains gloomy, according to the British Retail Consortium.
Consumer expectations for the state of the economy over the next three months rose six points to -38, according to the latest BRC opinion poll conducted with Opinium.
Brits’ expectations for their own personal financial situation also improved by six points to -10, the poll found, a rise primarily driven by last month’s budget being “not as bad as feared for households”, the BRC said.
However, it remains a parlous state with confidence in the economy now stuck below -30 for 11 of last 12 months. Expectations for retail spending also fell for the third consecutive month.
Helen Dickinson, CEO of the BRC, said the government must now deregulate on policies like employment rights and junk food.
“Government needs to pull the levers of growth, tearing down red tape and bureaucracy to allow businesses to flourish and create more jobs,” she said.
“From the employment rights bill to rules on less healthy foods, the government must consider the cumulative impact of its policies on business, ensuring new regulations are workable and do not punish responsible businesses.”
Shoppers benefited from a drop in the UK’s inflation rate last month which unexpectedly fell to 3.2%, according to the Office for National Statistics (ONS) on Wednesday.
“Lower food prices, which traditionally rise at this time of the year, were the main driver of the fall, with decreases seen particularly for cakes, biscuits, and breakfast cereals,” according to ONS chief economist Grant Fitzner
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