UK consumer sentiment hits record low on trade war fears - BRC

(Alliance News) - UK consumer sentiment weakened sharply in April, as fears over a potential trade war weighed heavily on economic expectations, new survey data from the British Retail Consortium showed on Wednesday.

According to the BRC-Opinium consumer sentiment monitor, expectations for the state of the UK economy over the next three months fell to a net score of negative 48, down significantly from negative 35 in March. Expectations for personal finances also worsened, dropping to negative 16 from negative 10.

The survey was conducted shortly after US President Donald Trump's proposed "Liberation Day" tariffs, which triggered concerns about escalating global trade tensions.

"With fieldwork completed just days after Donald Trump's tariffs, it is unsurprising that consumer expectations for the economy plummeted to a record low," said Helen Dickinson, chief executive of the BRC. "Even with a pause on many of the US tariffs, business and consumer confidence remains fragile."

Despite the broader pessimism, expectations for retail spending rose slightly to plus 3, up from 0 in March, buoyed in part by seasonal Easter shopping. Spending expectations on groceries showed the strongest growth, particularly among older consumers, while younger respondents planned to spend more on eating out and beauty products.

Expectations for overall personal spending edged down to plus 10, from plus 11 in March, while anticipated personal saving rose slightly to minus 4 from minus 5.

Dickinson also highlighted additional pressures on the retail sector, including GBP7 billion in new costs this year from higher national insurance, increased national living wage rates, and the introduction of a packaging tax. She warned of the risk of low-cost Chinese imports being redirected to the UK, calling for a review of "de minimis" rules that currently exempt low-value imports from duties and checks.

"It is vital the UK's strict quality standards are upheld to ensure the best outcome for British businesses and consumers," she said.

The BRC survey was conducted by Opinium between April 4 and April 7 and included a sample of 2,000 UK adults.

By Eva Castanedo, Alliance News reporter

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