UK consumer confidence falls in December ahead of January 'spending squeeze' - BRC

UK consumer confidence fell sharply in December, according to the British Retail Consortium, which said retailers will now likely find themselves facing a "spending squeeze" in the new year.

The BRC consumer spending monitor indicated public confidence in the state of the UK economy had dropped from -19 in November to -27 in December, while plans for personal spending fell from +3 to -3.

The personal financial situation index held steady at -3 points and personal savings increased from -9 to -5.

BRC chief executive Helen Dickinson said: "The public's spending intentions – both in retail and beyond – dropped 6pts, with expectations of spending in nearly every retail category falling. If these expectations are realised, retailers could find themselves facing a New Year spending squeeze just as they unveil their January sales.

"The weak spending intentions could pave the way for a challenging year for retailers, who face being buffeted by low consumer demand and £7.0bn of new costs from the

Budget set to hit the industry in 2025. To mitigate the impact this will have on growth, Government must ensure that its proposed business rates reform does not result in any shops paying higher rates than they already do."

Reporting by Iain Gilbert at Sharecast.com