U.K. Consumer Confidence Tumbles on Concern About Cost of Living

Author of the article: Bloomberg News Philip Aldrick By Philip Aldrick (Bloomberg) — U.K. consumer confidence fell in January to depths last seen during the early months of lockdown in 2021 as cost-of-living crisis took over from the pandemic as a prime concern. GfK’s monthly consumer confidence index, which is closely followed by the Bank…
U.K. Consumer Confidence Tumbles on Concern About Cost of Living

Author of the article:

Bloomberg News

Philip Aldrick

By Philip Aldrick

(Bloomberg) —

U.K. consumer confidence fell in January to depths last seen during the early months of lockdown in 2021 as cost-of-living crisis took over from the pandemic as a prime concern.

GfK’s monthly consumer confidence index, which is closely followed by the Bank of England and the Treasury, dropped 4 points in January to minus 19, the lowest level since the country was in lockdown in February 2021.

“Despite some good news about the easing of Covid restrictions, consumers are clearly bracing themselves for surging inflation, rising fuel bills and the prospect of interest rate rises,” said Joe Staton, client strategy director at GfK.

Households are bracing for a big hit in April, when energy bills may rise by 50% and the new national insurance contribution kicks in. For the typical U.K. household on an annual income of 27,000 pounds ($24,000), the twin shock will cost about 1,200 pounds.

The drop in confidence was driven by concerns over personal finances and the general economic situation. People’s expectation of their own situation fell 3 points between December and January to minus 2. It was last lower in November 2020.

There was also a 4-point fall in the major-purchase index, which measures whether now is a good time to buy big ticket items. It is now at minus 10, which “suggests people are ready to tighten their belts,” Staton said.

“Will the mood brighten when the latest wave of the pandemic subsides and Covid numbers improve? It seems unlikely because it’s the cost-of-living squeeze that’s worrying us now, and this will affect us for months to come,” Staton said.

GfK surveyed 2,000 people between Jan. 4 and Jan. 12.

©2022 Bloomberg L.P.

Bloomberg.com

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Wheat futures ease, but Russia-Ukraine tensions limit losses
Read More

Wheat futures ease, but Russia-Ukraine tensions limit losses

Author of the article: SINGAPORE — Chicago wheat futures dipped on Friday after a strong performance in the previous session, although heightened tensions between leading grains suppliers Russia and Ukraine limited losses. The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.4% at $8.01-1/2 a bushel, as of 0159 GMT, after…
Canadians’ anger over Rogers outage may complicate its merger hopes
Read More

Canadians’ anger over Rogers outage may complicate its merger hopes

Author of the article: TORONTO — Rogers Communications complicated its chances of getting antitrust approval for a C$20 billion telecom merger after Friday’s massive outage highlighted the perils of Canada’s effective telecom monopoly and sparked a backlash against its industry dominance. The Rogers network outage disrupted nearly every aspect of daily life, cutting banking, transport…
U.S. and Euro-Area GDP Data to Show First War Effects: Eco Week
Read More

U.S. and Euro-Area GDP Data to Show First War Effects: Eco Week

Author of the article: Bloomberg News William Horobin and Vince Golle (Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast. The U.S. and the euro area are scheduled to provide quarterly growth readings in the coming week for the start of 2022, an early indication of how Russia’s war in…
Activision board says no evidence senior execs ignored harassment cases
Read More

Activision board says no evidence senior execs ignored harassment cases

Author of the article: Activision Blizzard Inc’s board and external advisers said on Thursday there was no evidence to suggest that senior executives intentionally ignored or attempted to downplay reported instances of gender harassment. There were some substantiated instances of gender harassment, the independent directors of the company’s board said https://bit.ly/3HtI8Yz in a filing. But…