‘Alarming’ drop in UK consumer confidence since | U.Ok.Finance News
Consumer confidence in Britain’s future financial prospects has nosedived over the previous yr, new knowledge reveals. Confidence has crashed by 31 factors during the final 12 months, tumbling from an average of minus 9 between May and July 2024 to an average of minus 40 between May and July this yr, Which?’s Consumer Insight Tracker demonstrates.Between this May and July, 56% of Britons, on average, believed the economic system would deteriorate, whereas solely 16% anticipated enchancment. This comes after Chancellor Rachel Reeves’s Autumn Budget of tax hikes kicked in in “Awful April”, pushing inflation up to three.5% as family payments soared. Which? described the statistics as exhibiting a “significant fall” to some of probably the most dire ranges witnessed since early 2023, when the cost-of-living disaster dominated headlines and inflation soared into double digits.Economic confidence plunged sharply final autumn and hit notably bleak ranges from February to May, when international developments, together with US tariff coverage, fuelled the gloom. Confidence has proven modest indicators of restoration since then, however stays markedly decrease than a yr in the past.Pensioners have emerged as probably the most downbeat demographic, with their religion in Britain’s financial future collapsing catastrophically from an average of minus 5 between May and July final yr to a current average of minus 63.Retirees’ confidence plummeted dramatically quickly after the Government’s initial announcement to axe winter fuel funds for many pensioners. Which?’s knowledge confirmed confidence has remained low since, regardless of the Government’s reversal on these plans.Which?’s knowledge signifies that the financial hardships from the height of the cost-of-living disaster have but to revert to pre-crisis ranges.In the month main up to July 18, it’s estimated that round 2.1 million households missed not less than one important cost, corresponding to rent or mortgage funds, utility payments, credit card or loan funds.It’s additionally estimated that almost half (49%) of UK households, equating to 13.9 million, made not less than one adjustment to cowl important spending like utility payments, housing prices, groceries, college provides and medicines in the final month – measures included chopping back on necessities, dipping into financial savings, promoting possessions or borrowing.Rocio Concha, Which? director of coverage and advocacy, stated: “Our research shows consumer confidence in the future of the UK economy has dropped alarmingly over the last year. The Government has rightly focused on growing the economy and raising living standards, but in doing so, it must not overlook the importance of consumer protections in restoring confidence.”People are sick to the tooth of having to dodge fraudsters when buying online, watching out for rogue merchants when making home enhancements and needing to keep an eye out for dodgy pricing practices which imply that gives aren’t pretty much as good as they first seem.”The right consumer protections give people the confidence to spend, and the Government must place these protections at the heart of its plans to grow the economy.”
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