Consumer confidence in economy falls to new low’

Consumer expectations for the economy have plunged as the government faces continued pressure over public finances.

- JOSIE CLARKE and HOWARD MUSTOE

It comes as businesses report job cuts and reduced sales. Sainsbury’s said yesterday it would cut 3,000 jobs while clothes chain Primark reported that its sales fell for the first time since the pandemic.

Expectations for the state of the economy over the next three months have worsened, according to the British Retail Consortium (BRC) Consumer Sentiment Monitor. Those aged 18 to 27 remain the only group to expect the economy to improve, while two-thirds of those aged between 60 and 78 expect it to worsen, the poll found.

Confidence in personal finances also fell with older generations again remaining the most pessimistic. Expectations of retail spending and wider spending both fell significantly, although the BRC said much of the drop is likely to reflect the end of the Christmas period as people “tightened their belts for the new year ahead”.