Shoppers continue to prioritise spending on groceries despite planning to cut back elsewhere, according to the latest British Retail Consortium Consumer Sentiment Monitor.
By contrast, overall retail spending expectations have fallen to a net +1%, the lowest level recorded since February.Although the report shows a third consecutive monthly improvement in consumer confidence, consumers are feeling largely negative about the wider economy with a net 37% of consumers expecting the UK economy to worsen over the next three months, while expectations for personal finances stand at net -12%.
Among consumers planning to reduce spending, half said they intend to cut leisure spending and the same number plan to buy cheaper products. More than a quarter also expect to purchase fewer items.
Parents are feeling particular pressure this summer, with 54% saying they expect to experience greater financial strain during the school holidays. Higher grocery spending was identified as the biggest cause of that pressure, followed by the cost of days out and activities.
