Consumer expectations for spending within the furniture sector are forecast to fall by 15% over the next three months, says new data from the British Retail Consortium (BRC).
According to BRC-Opinium data, consumer expectations over the next three months of their Personal financial situation dropped to -4 in January, down from -3 in December.
Expectations of the State of the economy worsened to -34 in January, down from -27 in December, Personal spending on retail fell to -9 in January, down from -3 in December and Personal spending overall dropped to +4 in January, down from +11 in December. Personal saving increased to -3 in January, up from -5 in December.
Within the categories, consumer expectations over the same period for spending on home and garden furniture are down 15%, while DIY and home improvements were also down by 6%.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “As the government warns of tough times ahead, it is little surprise that the public have caught the January blues. Consumer confidence in the economy fell to a new low, with concerns most pronounced among older generations. Gen Z (18-27) remain the only group to expect the economy to improve, while two-thirds of Boomers (60-78) expect things to get worse.
“Feelings around people’s own finances fell slightly, with older generations remaining the most pessimistic. Expectations of retail spending and wider spending both fell significantly, though much of this is likely to be the end of the Christmas period, as people tightened their belts for the new year ahead.
“On top of this challenging market backdrop, retailers are facing £7bn in additional costs from the Budget and new packaging levy. With retailers’ tight margins leaving little scope to absorb more costs, many are warning of price rises and job cuts in the coming months. To mitigate this, and shore up investment in shops and entry level jobs, the Government must ensure that no shop ends up paying a higher business rates bill because of its proposed reforms.”
