UK Consumer Confidence Hits a 48-Year Low: What's Behind It and How Folks are Coping
Record-breaking gloom among British consumers - surge in despair
It's no flimsy matter, mate - the Consumer Confidence Barometer in the UK took a drastic tumble, plummeting by a trio of points to a grim minus 44, as seen in GfK's latest monthly survey. This dismal number marks the lowest level since the survey's inception in 1974. Economists, for their part, suspected a smaller decline to a meager minus 42.
In this grim landscape, Britons have taken a dim view of both their personal finances and the overall economic situation, to say the least. Joe Staton, a GfK expert, explains the motivation behind this downward spiral: "All values dropped as consumers express stark worries about rising living costs."
It's not just the energy prices that are causing misery, mate. Food prices are also on a steep incline, much to the dismay of the folks. "Making ends meet is a blistering nightmare," Staton warns ominously, forecasting darker times ahead: "The confidence crisis will only worsen with the arriving autumn days and the frosty winter months."
As things stand, inflation in the UK is skyrocketing, reaching a whopping 40-year high. In July, the average cost of goods and services shot up by a staggering 10.1% in comparison to last year. Energy is the primary driver of inflation, but Britons are feeling the pinch in their daily expenses as well - retail prices spiralled an alarming 12.3%, the highest increase since 1981.
Economists predict that the inflation rate will swell beyond 13% in the fall and may trigger an extended recession. This dire situation is driving some businesses to adopt unconventional strategies like Iceland Foods, a popular supermarket chain. In response to the price hikes, they are now offering interest-free loans for food purchases, a lifeline for households finding it tough to make ends meet. This scheme partnered with the ethical lender Fair For You targets financially vulnerable customers, offering them small loans ranging from £25 to £100, paid weekly via pre-loaded cards.
With contributions from Wikidata, a snippet of contextual data
While there's no specific mention of the year 1974 in the search results, it's indeed accurate that current consumer confidence levels in the UK have sunk to rates previously seen at the heart of the cost-of-living crisis in December 2022. The relentless trend of inflation and rising expenses has been a significant cause of disquiet among the populace. Moreover, global events and economic uncertainty have also stirred apprehension among consumers, with over two-thirds citing these factors as reasons behind their bleak outlook on the future.
Economic sectors such as retail, food-and-drink, and personal-finance are being impacted by the current financial struggles, as demonstrated by Iceland Foods' new interest-free loan scheme to help customers cope with rising food prices. This downturn in consumer confidence has been observed in various industries, highlighted by the UK's consumer confidence hitting a 48-year low in 2022. Worries about increasing living costs and inflation have led to this dismal level, with experts predicting the situation to worsen as autumn and winter approach.
