UK consumer outlook sinks amid tariff turmoil; retail spending rises

Consumer expectations for the UK economy plummeted to a record low in April, according to the latest BRC-Opinium survey. The survey, conducted shortly after Donald Trump's ‘Liberation Day’ tariffs announcement, showed that expectations for the state of the economy fell sharply to -48 in April, down from -35 in March.

Expectations for personal financial situations also worsened, declining to -16 from -10 the previous month. Personal spending on retail rose modestly, moving to +3 from 0 in March, helped by seasonal factors such as Easter shopping. However, overall personal spending dipped slightly to +10, compared to +11 in March. Meanwhile, personal saving expectations showed a slight improvement, rising to -4 from -5, BRC said in a release.

 “With fieldwork completed just days after Donald Trump’s 'Liberation Day' tariffs, it is unsurprising that consumer expectations for the economy plummeted to a record low. The original tariff schedule, since reduced for most countries, was expected to reduce growth in the UK and elsewhere,” said Helen Dickinson, chief executive of the British Retail Consortium.

“Even with a pause on many of the US tariffs, business and consumer confidence remains fragile. The risk of higher global prices is an unwanted addition to the £7 billion (~$9.34 billion) in new costs hitting retailers this year from higher employer National Insurance, increased NLW, and a new packaging tax. Many retailers are also concerned about the risk of cheap Chinese products being diverted from the US to other destinations, including the UK. The UK should review the de minimis rules, which allow low-value imports to avoid checks and duties. It is vital the UK’s strict quality standards are upheld to ensure the best outcome for British businesses and consumers,” Dickinson added.

Fibre2Fashion News Desk (HU)