Invest Daily Pro
  • Economy
  • Investing
No Result
View All Result
  • Economy
  • Investing
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Top News

Consumer confidence dips ahead of Labour’s first Budget as concerns over tax rises grow

by
October 25, 2024
in Top News
0
Consumer confidence dips ahead of Labour’s first Budget as concerns over tax rises grow
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Consumer confidence in the UK declined in October, with pessimism about the upcoming Budget outweighing optimism from falling inflation, according to GfK’s latest consumer confidence index.

The index slipped by one point to -21, marking its lowest reading since March and underscoring the challenges the Labour government faces in bolstering economic optimism since coming to power in July.

GfK’s survey results suggest that households are bracing for substantial fiscal changes as Chancellor Rachel Reeves prepares her maiden Budget, expected to include around £40 billion in tax increases. Potential rises include subjecting employers’ pension contributions to National Insurance and capital gains tax hikes, measures that have heightened consumer anxiety.

“As the Budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation,” said Neil Bellamy, GfK’s consumer insights director. The Labour government’s anticipated tax increases and overall fiscal tightening seem to have overshadowed recent improvements in inflation and GDP growth forecasts.

Economic and personal finance worries rise

The general economic situation index, which measures confidence in the economy over the past year, fell by one point to -28. This decline reflects consumer unease about the country’s economic performance despite encouraging signals, such as the International Monetary Fund’s upward revision of UK GDP growth from 0.7% to 1.1% for the year.

Inflation dropped to 1.7% in September from 2.2% in August, its lowest level in three years, raising hopes that the Bank of England will reduce interest rates by 25 basis points in both November and December. Interest rate cuts typically boost consumer confidence as they lower borrowing costs and ease financial pressures.

Consumers cautious with spending but open to future purchases

GfK’s major purchase index, which gauges willingness to make significant purchases, increased by two points to -21, suggesting that demand for big-ticket items like housing and cars could rebound if interest rates fall. In contrast, the savings index rose by four points to +27, indicating that consumers remain cautious with their spending, preferring to save amidst economic uncertainties.

Retail sales have stagnated since the pandemic, with consumers showing a greater inclination to save, according to data from the Office for National Statistics (ONS). However, the positive change in the major purchase index suggests that some households may be preparing to spend if economic conditions improve.

ShareTweetPin

Related Posts

Have a taste of the perfect day in paradise with SULÀ Spirits
Top News

Have a taste of the perfect day in paradise with SULÀ Spirits

January 8, 2025
First months of 2025 likely rainy amid La Niña conditions, says PAGASA
Top News

First months of 2025 likely rainy amid La Niña conditions, says PAGASA

January 8, 2025
December inflation rises to 2.9%
Top News

December inflation rises to 2.9%

January 7, 2025
Outstanding debt hits fresh high of P16.09T
Top News

Outstanding debt hits fresh high of P16.09T

January 7, 2025
Outstanding debt hits fresh high of P16.09T
Top News

Outstanding debt hits fresh high of P16.09T

January 7, 2025
PHL end-December dollar reserves drop to $106.8B
Top News

PHL end-December dollar reserves drop to $106.8B

January 7, 2025
Next Post
Fuji-Haya, LS Electric power up at 49th IIEE Annual National Convention

Fuji-Haya, LS Electric power up at 49th IIEE Annual National Convention

Recommended

BSP approves 11 bank branches in Q3

BSP approves 11 bank branches in Q3

December 25, 2024
Innovating in Retail: Inc & Co’s Strategic Approach to Transformation

Innovating in Retail: Inc & Co’s Strategic Approach to Transformation

September 24, 2024
Community lenders unlock £1bn to support small firms rejected by banks

Community lenders unlock £1bn to support small firms rejected by banks

December 5, 2024
Direct add’l infra funds to flagship projects for economic gains, gov’t told

Direct add’l infra funds to flagship projects for economic gains, gov’t told

December 26, 2024
We didn’t start the fire (but goodness, we might need to put it out in 2025)

We didn’t start the fire (but goodness, we might need to put it out in 2025)

January 1, 2025
MVP rewards Paris Olympic Games medalists, vows LA2028 support

MVP rewards Paris Olympic Games medalists, vows LA2028 support

August 22, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    No Result
    View All Result
    • About us
    • Contact us
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Terms & Conditions
    • Thank you

    Copyright © 2024 investdailypro.com | All Rights Reserved