Consumer confidence weakens among Britons amid tax rise fears
Researchers suggested the figures showed that consumers are currently 'sensing stormy conditions ahead' amid wider uncertainty in the economy.
The drop was shallower than expected by economists, who had predicted a reading of -20 for the month.
The research found that its measure from consumers' view of the general economic situation for the country over the past year dropped one point to -44.
Expectations for the general economic situation over the next 12 months also decreased by one point for the month.
Meanwhile, the index for consumers' views on their personal finances remained steady but was still in negative territory.
Nevertheless, there was a rise in the study's savings measure and people continued to seek to benefit from elevated interest rates.
Neil Bellamy, consumer insights director at GfK, said: 'The key measures on personal finances, the economy and purchase intentions are flat in July, and many will conclude that consumers are in a cautious wait-and-see mood.
'But the data suggests that some people may be sensing stormy conditions ahead.
'With speculation growing over possible tax rises in the autumn budget, and price pressure contributing not just to higher inflation already but also to the likelihood of worse inflation to come, the news is worrying.'
It came as figures from the Office for National Statistics (ONS) showed that retail sales bounced back 0.9% last month as record hot weather boosted sales of food and drink.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
an hour ago
- Telegraph
Food price rises outstrip UK inflation
Households are facing more expensive weekly shops after food prices outstripped inflation because of higher costs for British staples such as beef and teabags. According to the British Retail Consortium (BRC), food price inflation rose to 4pc in July – its highest level since February last year. The latest figures from the Office for National Statistics (ONS) show the UK's inflation rate rose to 3.6pc in the year to June, up from 3.4pc in May. The statistics body said that price rises in food and fuel had pushed inflation higher. The UK's inflation rate still stands some way off the Bank of England's 2pc target. Helen Dickinson, the chief executive of the BRC, said staples such as 'meat and tea' were hit the hardest as wholesale prices suffered from tighter global supplies. The recent acceleration in food prices also comes as retailers pass on increased labour costs after measures from the Chancellor's October Budget took effect in April. Retailers had previously warned that increases in employment costs would lead to higher prices on shelves. Ms Dickson said that the Government should 'think carefully about the next Budget', adding that if the Chancellor introduced tax rises this year, it would lead to additional costs for households. 'Further tax rises will ultimately hurt households, locking in inflation and forcing people to pay higher prices to put food on the table,' she said. 'Shop around' It marked the sixth consecutive month of rising food inflation. Household expectations of inflation are particularly alert to food prices as the cost of a weekly supermarket shop continues to climb. Mike Watkins, from data firm NielsenIQ, said: 'Consumers' household budgets are coming under pressure with the food retailers now seeing price increases above the consumer prices index. 'However, price competition helped by promotional activity will still mean that shoppers can save money by shopping around.' Mr Watkins added that as inflation remains elevated, 'high street retailers will also be concerned about customer retention over the summer holiday season if they are to maintain sales momentum'. Overall shop price inflation increased to 0.7pc in July, up from 0.4pc in June, according to figures compiled by the BRC and NielsenIQ. Summer sales for clothing and furniture brought non-food inflation to -1pc in July, against a decline of -1.2pc in June. Retailers will also face fresh pressure from a packaging tax coming into force later this year. There are concerns the changes – which will see food and drink companies charged a levy based on how many tonnes of packaging such as glass, aluminium and plastic they use – will lead to higher costs for companies and increased prices for consumers without driving a rise in recycling rates.
Fashion United
16 hours ago
- Fashion United
Retail crime in England and Wales hits 20-year high
Shoplifting in England and Wales has surged to its highest level in over two decades, according to the latest figures released by the Office for National Statistics (ONS). In the year to March 2025, police recorded over 530,000 shoplifting offences, a 20 percent increase on the previous year and the highest number since current recording methods began in 2003. The rise in shoplifting forms part of a broader uptick in personal theft. Theft-from-person offences also rose by 15 percent, reaching just over 151,000 cases. In contrast, burglary and vehicle theft saw declines of 8 percent, suggesting that theft-related crime is becoming more concentrated in retail and public environments. The British Retail Consortium (BRC) estimates that retail theft now costs the sector over 2.2 billion pounds annually. Beyond the financial impact, the increase has contributed to a surge in violence and abuse toward retail workers and delivery staff, with more than 2,000 incidents reported daily, reported Retail Sector. The rise in organised retail crime, including coordinated thefts by gangs, has further intensified the challenge for retailers. Tom Ironside, director of business and regulation at the BRC, welcomed steps taken by the UK government through its proposed Crime and Policing Bill, which aims to remove the 200 pounds threshold for prosecuting thefts, signalling a tougher stance on offences previously deemed "low-level." He urged policymakers to go further in extending legal protections to all frontline retail workers, echoing legislative measures already in place in Scotland, reported Retail Sector. While the Crime Survey for England and Wales, a broader measure of criminal trends, estimated 2.8 million theft incidents in the year, this represents little change from the previous year. However, the sharp rise in reported shoplifting suggests an intensifying pressure on high street retailers, particularly in the wake of the pandemic and amid ongoing economic headwinds.
Reuters
20 hours ago
- Reuters
UK public sector productivity picks up, still lower than before pandemic
LONDON, July 28 (Reuters) - British public sector productivity grew at its fastest annual rate in two years in the first quarter of 2025 but remained lower in outright terms than before the pandemic, official figures showed on Monday. Productivity growth - the main driver of long-term increases in living standards - has been weak across the British economy since the 2008 financial crisis and has slowed more than in similar economies. British public-sector productivity fell especially sharply during the COVID-19 pandemic, when hospitals were unable to carry out many routine treatments. Afterwards it struggled to recover, partly due to industrial action by health workers. Monday's data from Britain's Office for National Statistics showed total public service productivity grew 1.0% in the first quarter of 2025 from a year earlier. That was up from annual growth of 0.8% in the final quarter of 2024 and the fastest since the first quarter of 2023. Public sector productivity growth for 2024 was revised up to 0.1% from a decline of 0.3%, reflecting greater healthcare output than first thought. However, this revision still left the overall productivity 4.2% below its pre-pandemic level while in the health service last year it was nearly 9% lower than in 2019 and similar to its 2012 level. Lower productivity levels effectively mean the public must pay more tax to receive the same services as before - adding to the budget challenge facing Britain's government and a broader sense of public dissatisfaction with major political parties. Measuring public sector productivity is harder than for the private sector as many outputs are tricky to value and it is difficult to track how quality changes. The health service's own estimates show less of a shortfall than the ONS - particularly for quarterly data - due to differences over high-cost drugs, COVID-19 vaccines and how English data is applied to the rest of the United Kingdom. Monday's ONS data are classed as being under development, meaning they are more likely to be revised than main ONS data.
