Household confidence improves as UK retail sales edge up

A little more confidence is returning to household finances. Barclays' September survey found 67% felt confident about their finances, up from 66% in August, while 73% felt able to live within their means, up from 71%.

That offers an encouraging detail alongside the latest retail figures. Trading Economics reports that like-for-like UK sales rose 1% compared with a year earlier, improving on August's 0.5%. The British Retail Consortium recorded total sales growth of 1.3%, with food rising 2.5% and non-food purchases edging up 0.3%.

These are spending figures, not proof that people bought more goods or became better off. Barclays says card spending growth remained below inflation, while 68% of surveyed consumers worried about the forthcoming Budget.

Households are responding carefully: a quarter reported building a savings buffer and 30% were cutting non-essential spending. Barclays' research covered 2,000 UK consumers.

The improvement is modest and pressures remain. Still, more people feeling able to manage within their means is a welcome sign in a difficult year for household budgets.

Sources

• Trading Economics — UK retail sales growth picks up in September
• British Retail Consortium — Sluggish sales as shoppers look for Budget boost
• Barclays — September card spending and consumer confidence