Consumer confidence took another beating in February to hit its lowest in 11 months on fears around higher energy prices and employer national insurance.
According to the British Retail Consortium, consumer confidence towards the state of the economy stooped from -34 points to -37 between January and February.
This marked the fifth straight monthly decline, as sentiment around personal finances also fell, while expectations for personal spending on retail increased.
“With many businesses warning of the impact that April’s employer national insurance contributions increase will have on hiring, and the rising energy price cap pushing up the cost of domestic bills, it is little surprise that many households are worried,” BRC head Helen Dickinson said.
“And while there was a positive increase in expectations of personal retail spending, this may be largely driven by the expectations of higher prices in the future.”
She added two-thirds of retailers had signalled price increases in response to some £7 billion in additional costs, including from higher tax bills.
“Almost half of retailers also warned of hiring freezes, with entry-level jobs often among the first to go as they seek any cost efficiencies to help them protect customers.”