Weakened consumer confidence 'making life difficult'

Date: 17th June 2008

Weakened levels of consumer confidence are making things more difficult for retailers in the UK, it has been claimed.

According to Richard Dodd, a representative from the British Retail Consortium (BRC), because of the number of jobs dependent upon the retail sector, any spending reductions directly impact upon the economy.

"Consumer confidence is low which is leaving retailers operating in a very tough climate," said Mr Dodd.

"The underlying climate is quite difficult because customers are very short of spare cash and they have to focus their spending on essentials."

Indeed, Mr Dodd noted that the food sector has been coping better than any other area.

In related news, the Bank of England is expected to release new inflation data later today.

Despite a target of two per cent, inflation is currently at the higher rate of three per cent.