Confidence among British consumers has fallen to another record low, with British households feeling significant pressure caused by the cost of living squeeze. UK consumers are now reported to be more pessimistic about the economic outlook than at any time since records began in 1974.
Even during the peak of the financial crash in the summer of 2008, confidence only fell as low as -39, and it's now being reported at -49.
In an attempt to curb inflation, the Bank of England raised interest rates once again, which will make mortgages and other loans more expensive for millions of people. The average monthly mortgage payment for a first-time buyer is 37%, or £300, higher than at the start of the year, according to data provided by Rightmove.
A consumer confidence survey conducted by GfK found that there remined “deep concerns” among consumers about both their personal finances and the state of the economy and the responses to forward-looking questions were “especially worrying”, Joe Staton, client strategy director at GfK, said. He also commented:
“Consumers are buckling under the pressure of the UK’s growing cost of living crisis driven by rapidly rising food prices, domestic fuel bills and mortgage payments,”
Key changes in consumer trends for the hospitality industry:
Overall growth is lagging behind inflation.