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Gen Z’s plans to spend more cash over the next three months has contributed to a rise in confidence in the state of the economy, a new survey has suggested.
The consumer sentiment monitor by the British Retail Consortium and Opinium rose two points to –35 in March, up from a record low the month before.
Brits are also feeling more optimistic about their personal finance situation and therefore expect to spend more over the next three months.
This is especially true among Gen Z – those aged 18 to 27 – who are expecting to spend more than the previous three months across every category. By contrast, Gen X – aged 44 to 59 – foresee the biggest cuts for most items except food.
“Consumer confidence stabilised this month after February’s record low,” said BRC CEO Helen Dickinson. “This was coupled with an increase in spending expectations for the three months ahead, both for retail spending and spending more generally.”
Shoppers expect to spend more on grocery bills than any other category, although the BRC noted this could be due to the anticipation of higher prices. Health and beauty products are expected to see a drop.
“Food inflation is likely to hit 5% by the end of the year, and with further costs from the new packaging tax and implementation of the Employment Rights Bill, prices risk being pushed up further,” said Dickinson.
The BRC-Opinium data aligns with the long-running GfK consumer confidence index, which rose by two points to –20 in February.
UK growth is now expected to be weaker than previously thought this year, according to the OECD, following a disappointing recent economic performance.
The OECD trimmed its growth estimate for 2025 to 1.4%, this week, down from 1.7% in a previous calculation.
The downgrade comes ahead of Rachel Reeves’ spring statement next week, with the Chancellor looking for new sources of growth.
Dickinson said the statement “is an opportunity for government to inject some confidence back into the economy”.
Morning update
Cranswick has upgraded its medium-term revenue target due to strong demand for its meat and poultry products.
The British meat producer now expects “mid-single digit” organic revenue growth and an operating margin of 7.5%, up from 6% previously.
CEO Adam Couch said the “relentless focus on the strengths of the business, which include industry leading investment, a clearly defined strategy, broadening product portfolio and unrivalled management team, will continue to support the future successful development of Cranswick over the long term”.
The company’s share price hit a record high in September after it raised its profit forecast for the year off the back of strong trading in the first half.
The announcement was made ahead of the company’s Capital Markets Day this morning.
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