Consumer confidence hits record low as Middle East war rattles households Proactive uses images sourced from Shutterstock
British consumer confidence has collapsed to its lowest level on record, as the Middle East conflict stokes fears of higher inflation and rattles financial markets.
The British Retail Consortium (BRC) said its measure of economic expectations fell to -53 in March, the worst reading since the survey began after falling sharply from -30 in February.
Confidence in personal finances also hit a record low, dropping to -17 from -6 the previous month.
The survey, conducted by pollster Opinium between 10 and 13 March, captures the mood after global stock markets fell sharply in response to the conflict.
BRC chief executive Helen Dickinson said confidence “collapsed as the Middle East conflict raised the prospect of higher inflation in the months ahead.”
She added that the fall was “most pronounced among the Boomer generation, who are most reliant on investment and pension funds.”
Despite the gloom, spending intentions edged higher, with expectations for overall personal spending rising to +13 from +6, and retail spending turning positive for the first time in two months.
The BRC said this likely reflects expectations that rising energy costs will push prices higher rather than any enthusiasm to spend more.
Dickinson used the data to call on the government to ease cost pressures on her sector, linking employment laws and pro-recycling measures to retail shop prices, adding to pressure on an industry navigating supply chain uncertainty.