UK Consumer Confidence Plummets to Near Record Lows as Budget Looms
LONDON – UK consumer confidence deteriorated sharply in September, hitting a near record low as concerns mount over the upcoming budget and persistent cost-of-living pressures, according to data released today. Overall confidence in the state of the economy fell to -36, down from -32 in August, while confidence in personal finances also declined to -7.
The latest figures, compiled by GfK, signal growing anxieties among british households about their financial wellbeing and the broader economic outlook. The decline comes amid speculation of potential tax increases in the upcoming Budget and continued high inflation, especially in food prices. This erosion of confidence impacts retail spending and overall economic growth,affecting businesses and individuals alike.
“worries about the Budget, combined with the increase in the cost of living, have eroded confidence, with little sign that inflation will come down soon,” said Helen Dickinson, chief executive of the british Retail Consortium.
Confidence in personal finances dropped three points to minus seven in September, and the forecast for personal finances over the next 12 months fell one point to four. Core food price inflation rose for the fifth consecutive month, reaching 5.1 per cent over the 12-month period.
The bank of England recently held interest rates, citing ongoing concerns about inflation, with the governor warning, “we’re not out of the woods yet.” Despite a decrease in interest rates on August 7th, GfK’s Joe Bellamy noted, “The 7 August decrease in interest rates does not appear to have provided any obvious boost to the financial mood of consumers or drawn attention away from day-to-day cost issues.” He added, “Looking at the economy, sentiment is sliding sharply.”