Labour levies push consumer confidence to year-long low
Deloitte's index of confidence among households hit its lowest since early 2024 as figures last week showed unemployment at a four-year high of 4.7 per cent while inflation has surged to 3.6 per cent.
Celine Fenech, a consumer insight expert at Deloitte, said: 'Concerns of a slowing labour market have left consumers worried about job security and income growth prospects, while persistent inflation and a high cost of living have negatively impacted sentiment towards personal debt.'
Ian Stewart, chief economist at Deloitte, added: 'Higher inflation – well above levels in the US and EU – coupled with a weaker jobs market is weighing on consumer sentiment.
'The UK is unlikely to see inflation returning to the 2 per cent rate that prevailed last summer until well into 2026.'
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