logo
UK consumer sentiment suffers first big fall in nearly 3 years, Deloitte says

UK consumer sentiment suffers first big fall in nearly 3 years, Deloitte says

Reuters7 days ago
LONDON, July 21 (Reuters) - British consumer sentiment had a marked fall for the first time in nearly three years last month, reflecting increased worries about job security, a Deloitte survey showed on Monday.
Deloitte said its consumer confidence index dropped by 2.6 percentage points to 10.4% in the second quarter, its lowest since the first quarter of 2024.
The fall was the first since the third quarter of 2022 - when inflation hit a double-digit peak and financial markets reeled from former Prime Minister Liz Truss' budget plans - apart from a 0.2 point decline last year which Deloitte did not view as statistically significant.
"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," said Deloitte consumer insight lead Celine Fenech.
Businesses have blamed increased employment taxes and a higher minimum wage which took effect in April, as well as planned law changes to make it harder to dismiss new employees, for making them more reluctant to hire.
Official data last week showed Britain's unemployment rate rose to 4.7% in the three months to May, its highest since 2021, while inflation picked up to 3.6% in June, the highest since January 2024.
The Deloitte figures paint a slightly different picture to Britain's longest-running survey of consumer sentiment, from GfK, which drifted in the second half of last year but rose to its highest since December last month.
Deloitte's survey of 3,200 consumers was conducted between June 13 and June 16 and the consumer sentiment index is based on six questions about job security, job opportunities, income, debt, children's welfare, and general health and wellbeing.
A separate question about the state of the economy saw a 3.9 percentage point rise in its balance, but it was still 18.4 percentage points lower than a year earlier.
"Activity in the UK has slowed in recent months, but an uptick in business confidence seen in the latest Deloitte CFO Survey testifies to continued resilience amid geopolitical uncertainties," Deloitte chief economist Ian Stewart said.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

EU's von der Leyen: trade deal delivers certainty in uncertain times
EU's von der Leyen: trade deal delivers certainty in uncertain times

Reuters

time11 minutes ago

  • Reuters

EU's von der Leyen: trade deal delivers certainty in uncertain times

PRESTWICK, Scotland, July 27 (Reuters) - European Commission President Ursula von der Leyen on Sunday said a U.S. baseline tariff rate of 15% on imported EU goods would apply to cars, semiconductors and pharmaceutical goods. She also said that a zero-for-zero tariff rate had been agreed for certain strategic products, including aircraft and aircraft parts, certain chemicals, and certain generic drugs. No decision had been taken on a rate for wine and spirits, she added. "Today's deal creates certainty in uncertain times, delivers stability and predictability," von der Leyen told reporters before leaving Scotland.

Al-Nassr agree £43.7m deal with Chelsea for Felix
Al-Nassr agree £43.7m deal with Chelsea for Felix

BBC News

time41 minutes ago

  • BBC News

Al-Nassr agree £43.7m deal with Chelsea for Felix

Al-Nassr have agreed a deal worth up to £43.7m for Chelsea forward Joao 25-year-old has been given permission to travel to Riyadh for his medical to complete the will link up with fellow Portugal international Cristiano Ronaldo at the Saudi Pro League side after they saw off interest from his former club recoup the £45m they paid Atletico Madrid for Felix last summer, having also sent the attacker out on loan to AC Milan for six months in January for a £5m loan Blues, who won the Club World Cup this month, have already sold goalkeepers Djordje Petrovic and Kepa Arrizabalaga and winger Noni Madueke to balance the books this have raised about £130m with further players like forward Raheem Sterling, left-back Ben Chilwell, midfielder Renato Veiga and striker Armando Broja currently up for have spent £212m on signings like striker Liam Delap, winger Jamie Gittens and forward Joao Pedro with interest in midfielder Xavi Simons and defender Jorrel Hato they are also under pressure from Uefa to come out of the summer with a "positive transfer balance" after being initially fined £27m with conditions placed on the club to comply with rules, or risk not being able to register new signings for the Champions League this season.

US expects to result of probe into chip imports in two weeks
US expects to result of probe into chip imports in two weeks

Reuters

time41 minutes ago

  • Reuters

US expects to result of probe into chip imports in two weeks

TURNBERRY, Scotland, July 27 (Reuters) - The Trump administration will announce the result of a national security probe into imports of semiconductors in two weeks, Commerce Secretary Howard Lutnick said on Sunday, without providing details. Lutnick told reporters after a meeting between U.S. President Donald Trump and European Commission President Ursula von der Leyen that the investigation - which is expected to result in tariffs on chips imports - was one of the "key reasons" the EU sought to negotiate a broader trade agreement that would "resolve all things at one time." Trump said many companies would be investing in semiconductor manufacturing in the United States, including some from Taiwan and other places, to avoid getting hit by new tariffs.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store