"With Christmas now around the corner, expectations of spending, particularly on retail goods, rose sharply, with a corresponding drop in expected savings. This effect was pronounced among Millennials and Gen X, the generations most likely to have children living at home. Worries about the cost of Christmas, coupled with concerns about potential tax rises in the upcoming Budget are likely to have contributed to the drop in sentiment around personal finances, which fell into double digits for the first time since May."
"While the prospect of Christmas may have boosted expectations of grocery spending, the general rise in food prices has meant many families are struggling with the rising cost of living. Retailers are doing what they can to limit price rises, but high costs from the last Budget - including increased employment and packaging taxes - are still filtering through into inflation. The Budget is an important opportunity to relieve these cost pressures - particularly the disproportionate burden of business rates on the retail industry."
The state of the economy improved marginally to -35 in October from -36 in September. Personal financial sentiment deteriorated to -11 in October from -7 in September. Personal retail spending expectations increased to +14 in October from +5 in September, and overall consumer spending rose to +18 from +14. Personal saving expectations fell to -9 in October from 0 in September. Expectations of spending climbed with Christmas approaching, most notably among Millennials and Gen X. Concerns about the cost of Christmas and potential tax rises contributed to weaker personal finance sentiment. Rising food prices and last Budget cost increases continue to pressure households and retailers, with business rates remaining a significant burden.
Read at London Business News | Londonlovesbusiness.com
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