Retail Confidence Takes a Sharp Dive

Things the BRC‑Opinium Data are Saying About Your Cash and Confidence

It looks like the economy’s got a bit of a downturn, but your spending habits are mixing in some unexpected twists—here’s the scoop in plain English (and a sprinkle of humor).

What the Numbers Reveal

Economy outlook: –37 (Feb) vs. –34 (Jan) – the fifth straight month the mood is slipping.
Personal finance: –11 (Feb) vs. –4 (Jan) – budgets are tightening, folks.
Retail spending: –5 (Feb) vs. –9 (Jan) – people are willing to splurge a touch more, should prices get sharper.
Overall personal spending keeps steady with a +4, unchanged from January.
Savings hold at –3, same as in January.

Helen Dickinson’s Take on the Situation

“People’s expectations of the economy reached a new low, having fallen almost 40 points since July 2024,” says Helen Dickinson, chief executive of the British Retail Consortium.

Gen Z feels the slump too. Even our most upbeat age group (18‑27) has seen optimism drop.
Women are doubly skeptical. They’re 13 points less confident about the economy and 17 points less confident about their own finances than men.
Business fears growing. Any hint of higher employer NICs next month and folks are already worried.
Energy price cap is raising budgets. The cost of home bills is taking a hit.
Retailers foresee higher prices. Two‑thirds expect price hikes due to an extra £7 bn in costs.
Hiring caution. Nearly half of retailers plan hiring freezes, especially for entry‑level roles.

The Triple Whammy Threat

Retailers warn: If government reforms bump up business rates, together with the new packaging levy and the rising NICs, consumers will finally feel the full brunt (think “budget, rates, and fees all multiply your price tag”).

Quick Take

The next three months look tough on the economy and personal finance fronts. Yet your dashable spending’s stubbornly holding a +4, with retail spending slightly easing but hinting at a future surge if prices climb.

Keep an eye on the headlines, and consider how these budget shifts might ripple down to your wallet—because if your bank account’s feeling a bit lighter, you’re not alone.