Consumer sentiment hits record low as Middle East conflict widens – London Business News | Londonlovesbusiness.com

UK consumers are bracing for hard times, with confidence dropping to historic lows amid growing economic worries.

According to BRC‑Opinium data for March, expectations for the economy over the next three months fell sharply to -53, down from -30 in February—the lowest level ever recorded.

Households’ views of their personal finances also worsened, sliding to -17, down from -6.

Yet despite mounting pessimism, spending intentions remain resilient. Retail spending plans rose slightly to +2, while overall personal spending climbed to +13, suggesting that many households are tapping into savings or credit to maintain their lifestyles. Meanwhile, savings intentions fell to -8, down from zero.

The figures highlight a population under pressure: worried about the economy yet continuing to spend to maintain living standards amid rising costs.

Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Consumer confidence collapsed as the Middle East conflict raised the prospect of higher inflation in the months ahead.

As stock markets tumbled, confidence in both the economy and personal finances dropped to their lowest levels on record.

The drop in confidence was most pronounced among the Boomer generation, who are most reliant on investment and pension funds. Meanwhile, spending expectations rose as shoppers expected to see rising energy costs reflected across the economy.

“The current conflict has created a great deal of uncertainty in the economy. Inflation is expected to rise in the coming months. Just as the economy was beginning to turn a corner on inflation, the rise in global energy prices is particularly unwelcome for businesses and families. It is now vitally important that Government policy does not exacerbate the situation, and bringing down the cost of living must be a top priority.

“From new employment laws to rising packaging taxes, Government must focus on how it can minimise unnecessary costs to retailers, thereby helping protect ordinary households from the rising cost of living.”