Latest news with #CostOfLivingCrisis
Yahoo
3 days ago
- Business
- Yahoo
‘Alarming' drop in UK consumer confidence over last year – Which?
Consumer confidence in the future UK economy has plummeted over the last year, figures suggest. Confidence has tumbled by 31 points over the last year, from an average of minus nine between May and July 2024 to an average of minus 40 between May and July this year, Which?'s Consumer Insight Tracker shows. On average between this May and July, 56% of people thought the economy would get worse and just 16% thought it would get better. Which? said the figures showed a 'significant fall' to some of the lowest levels seen since early 2023, when the cost-of-living crisis was in the headlines and inflation was in double figures. Confidence in the future economy declined sharply last autumn and was particularly low between February to May, when global events such as the US tariff policy contributed to the pessimism. Confidence had recovered a little since, but remained considerably lower than 12 months ago. Pensioners have been the most pessimistic group, with their confidence in the future UK economy falling dramatically from an average of minus five between May and July last year to a current average of minus 63. Pensioners' confidence dropped dramatically in autumn last year – shortly after the Government's first announcement of scrapping the winter fuel allowance for most pensioners – and has remained low since, in spite of the Government U-turn on fuel payments. Which?'s figures suggest that financial difficulties from the height of the cost-of-living crisis are yet to return to the pre-crisis levels. In the month to July 18, an estimated 2.1 million households missed at least one essential payment such as rent or mortgage payments, utility bills, credit card or loan payments. An estimated 13.9 million households (49%) also made at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the last month – such as cutting back on essentials, dipping into savings, selling possessions or borrowing. Rocio Concha, Which? director of policy and advocacy, said: '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 teeth of having to dodge fraudsters when shopping online, watching out for rogue traders when making home improvements and needing to keep an eye out for dodgy pricing practices which mean that offers aren't as good as they first appear. '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.'
The Independent
3 days ago
- Business
- The Independent
Consumer confidence in UK economy falls to lowest level in two years
Consumer confidence in the future UK economy has plummeted over the last year, figures suggest. Which? said the figures showed a 'significant fall' to some of the lowest levels seen since early 2023, when the cost-of-living crisis was in the headlines and inflation was in double figures. Confidence in the future economy declined sharply last autumn and was particularly low between February to May, when global events such as the US tariff policy contributed to the pessimism. Confidence had recovered a little since, but remained considerably lower than 12 months ago. Confidence has tumbled by 31 points over the last year, from an average of minus nine between May and July 2024 to an average of minus 40 between May and July this year, Which?'s Consumer Insight Tracker shows. On average between this May and July, 56 per cent of people thought the economy would get worse and just 16 per cent thought it would get better. Pensioners have been the most pessimistic group, with their confidence in the future UK economy falling dramatically from an average of minus five between May and July last year to a current average of minus 63. Pensioners' confidence dropped dramatically in autumn last year – shortly after the government's first announcement of scrapping the winter fuel allowance for most pensioners – and has remained low since, in spite of the Government U-turn on fuel payments. Which?'s figures suggest that financial difficulties from the height of the cost-of-living crisis are yet to return to the previous levels. In the month to July 18, an estimated 2.1 million households missed at least one essential payment such as rent or mortgage payments, utility bills, credit card or loan payments. An estimated 13.9 million households (49 per cent) also made at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the last month – such as cutting back on essentials, dipping into savings, selling possessions or borrowing. Rocio Concha, Which? director of policy and advocacy, said: '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 teeth of having to dodge fraudsters when shopping online, watching out for rogue traders when making home improvements and needing to keep an eye out for dodgy pricing practices which mean that offers aren't as good as they first appear. '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.'
The Independent
3 days ago
- Business
- The Independent
‘Alarming' drop in UK consumer confidence over last year – Which?
Consumer confidence in the future UK economy has plummeted over the last year, figures suggest. Confidence has tumbled by 31 points over the last year, from an average of minus nine between May and July 2024 to an average of minus 40 between May and July this year, Whic h?'s Consumer Insight Tracker shows. On average between this May and July, 56% of people thought the economy would get worse and just 16% thought it would get better. Which? said the figures showed a 'significant fall' to some of the lowest levels seen since early 2023, when the cost-of-living crisis was in the headlines and inflation was in double figures. Confidence in the future economy declined sharply last autumn and was particularly low between February to May, when global events such as the US tariff policy contributed to the pessimism. Confidence had recovered a little since, but remained considerably lower than 12 months ago. Pensioners have been the most pessimistic group, with their confidence in the future UK economy falling dramatically from an average of minus five between May and July last year to a current average of minus 63. Pensioners' confidence dropped dramatically in autumn last year – shortly after the Government's first announcement of scrapping the winter fuel allowance for most pensioners – and has remained low since, in spite of the Government U-turn on fuel payments. Which?'s figures suggest that financial difficulties from the height of the cost-of-living crisis are yet to return to the pre-crisis levels. In the month to July 18, an estimated 2.1 million households missed at least one essential payment such as rent or mortgage payments, utility bills, credit card or loan payments. An estimated 13.9 million households (49%) also made at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the last month – such as cutting back on essentials, dipping into savings, selling possessions or borrowing. Rocio Concha, Which? director of policy and advocacy, said: '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 teeth of having to dodge fraudsters when shopping online, watching out for rogue traders when making home improvements and needing to keep an eye out for dodgy pricing practices which mean that offers aren't as good as they first appear. '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.'
The Independent
05-06-2025
- Business
- The Independent
Confidence in UK economy falls from 45% in 2015 to 28% a decade later
Confidence in the strength of the UK economy has fallen from 45% in May 2015 to 28% a decade later following a cost-of-living crisis, Brexit, Covid and geopolitical upheaval, according to a long-running survey. But confidence in non-essential spending has held strong, at an average of 53% from 2015 to now, the Barclays 10 Years Of Spend report found. Despite financial pressure, households' discretionary spending has grown by 9.2% annually on average between 2021 and 2024, outpacing essential spending's 5% growth. The study, based on billions of transactions and more than 200,000 consumer confidence surveys since 2015, found that 66% of consumers pay more attention to their budget than they did a decade ago. Just under half (45%) of UK adults say they do not feel better off than they did 10 years ago. Consumer confidence in the strength of the UK economy reached its highest point in September 2016 – at 48% – after the Brexit referendum, and fell to its lowest in October 2022 – at 15% – following the September 'mini-budget'. Barclays has monitored consumers' efforts to find value in their weekly supermarket shop since 2023, finding that the percentage of shoppers who say they are trying to reduce their grocery spending has averaged 65%, peaking at 73% in April last year. Karen Johnson, head of retail at Barclays, said: 'The last decade has brought unprecedented levels of disruption. Amid all the highs and lows, consumers have continued to rebalance their budgets and find savvy ways to manage their money. 'This conscious consumerism will continue to shape spending in the years ahead.' British Retail Consortium chief executive Helen Dickinson said: 'Since the cost-of-living crisis began, many consumers have adjusted their spending habits to save money. 'More consumers are shopping around, holding off on big-ticket purchases, and are switching to own-brand ranges or cheaper brands. For food specifically, many customers are swapping out fresh products for frozen and buying cheaper cuts of meat. 'Nonetheless, retailers remain committed to supporting their consumers by keeping the price of essentials as low as possible.'
