UK consumer sentiment slides to weakest in over two years, BRC survey shows

British households’ expectations for their own finances and the state of the economy have fallen to their ​weakest in at least two years as the Middle East ‌conflict raised the prospect of higher inflation, according to a survey on Thursday.

The British Retail Consortium said households’ view of the ​likely state of the economy over the next three ​months sank to -53 in March from -30 in February, ⁠while their assessment of the prospects for their own ​finances dropped to -17 from -6, with both measures the lowest since ​the survey began in March 2024.

“Consumer confidence collapsed as the Middle East conflict raised the prospect of higher inflation in the months ​ahead,” BRC Chief Executive Helen Dickinson said. “The drop in ​confidence was most pronounced among the Boomer generation, who are most reliant ‌on ⁠investment and pension funds.”

Following are further highlights from the release and related context:

• Spending expectations rose as shoppers expected to see rising energy costs reflected across the economy
• Food and groceries ​was the ​main category of ⁠retail and leisure spending where households expect to spend more over the next three ​months
• Data is based on a sample of ​2,000 adults ⁠by polling company Opinium, collected from March 10-13
• The Bank of England this month forecast inflation would rise to 3.0-3.5% over ⁠the ​next couple of quarters
• The Confederation of British ​Industry said retailers reported the sharpest annual fall in sales since April ​2020 this month.