Source: Sharecast
The BRC's consumer sentiment monitor for June showed an increase in the current economic situation index to a net balance of -28% from -36% in May – the highest reading since December 2024.
The proportion of consumers who expect the economic situation to worsen over the next three months fell to 45%, from 51% in May and 60% in April, while the share predicting an improvement edged higher to 16% from 15% and 11% the previous two months respectively.
Consumers' views of their own personal financial situation improved to a net balance of -5%, up from -12%, while personal spending rose to a net balance of +12% from +10%. Meanwhile, the personal saving measure increase to -4% from -5%.
"Gen Z saw the biggest improvement, in both economic outlook and their expectations of their future finances, with younger generations remaining the most optimistic about the future," said Helen Dickinson, chief executive of the BRC.
"This rising optimism may also reflect the increase in minimum wage from April, with many younger people expected to have seen a significant uplift in their pay packet."
Dickinson welcomed some "big spending commitments" as announced by chancellor Rachel Reeves in last week's Spending Review, but said: "With retail already paying a disproportionate tax burden compared to other industries, it is vital the Government does not balance the books on the backs of retailers and their customers."