Stabilizing Consumer Confidence Signals Economic Resilience

Economy Takes a Tiny Leap Forward, It’s All About Those Small Wins

After a rough patch, the UK economy’s December‑March Index slipped up just a bit – from a shaky -37 to a slightly better -35. Not a mountain to climb, but it’s a small step in the right direction.

Personal Finances: A Slight Upswing

People’s wallets are feeling a bit lighter too:

Personal financial health improved from -11 to -10.
Retail spending rocketed from a negative -5 to a flat 0.
Overall spending jumped from +4 to a solid +11.
Unfortunately, savings slipped from -3 to a sharper -5.

Chief Executive’s Take – Helen Dickinson’s Word of Wisdom

Consumer confidence finally bounced back after hitting a record low in February. Helen says:

“The mood is calmer, folks. People are feeling a bit more optimistic about how many pounds they’ll hand over to retailers in the next three months. The good news? The DIY and home improvement stalls are finally seeing positive expectations for the first time since the start of the pandemic.”

All Gen Z (18‑27) segments are planning to spend a bit more than the last quarter.
Meanwhile, Gen X (44‑59) are dialing back most non‑food expenses.
Food and grocery budgets are still climbing to a new high, likely because of rising price expectations.

Why This Matters: The Spring Statement’s Magic

Post‑spring, the government has a chance to spark confidence again. But there’s a looming cloud:

Retailers face £5 bn in new expenses from national insurance hikes and a higher living wage.
This could push prices up, especially food inflation, which might hit 5% by year’s end.
New packaging taxes and the Employment Rights Bill add a few more bumps in the road.

Without a serious confidence boost from policymakers, retail investment could slump further, holding back the economy’s future growth.