Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Cost of living worries sends consumer confidence into 'freefall', says study

Cost of living worries sends consumer confidence into 'freefall', says study

Based on 6,000 interviews across the month, the confidence survey measures attitudes to household finances, property prices, job security and business activity.

Concern about the cost of living has hit a record high as UK households continue to "bear the brunt".

A new survey says confidence in household finances over the short term, hit an all-time low in April, dropping by six points on the previous month and a "massive" 57 points compared with April last year to 56.7.

The 12-month outlook also hit a new low, inching downwards from 49.1 to 48.3.

The study from YouGov and the Centre for Economics and Business Research (CEBR) found that overall consumer confidence has fallen one point since March but 7.6 points since this time last year.

Other metrics such as house value, job security, and business activity remain stable, the survey suggests.

The new statistics come ahead of the release of new UK GDP figures which are expected to put growth at 1% for the first quarter of this year, down from 1.3 for quarter 4 last year.

Last week the Bank of England warned of double-digit inflation and a high risk of recession.

Households were asked how they think their financial situation will change in the next year and the survey then assigns a score based on the responses.

Anything above 100 is positive, while if it falls below 100 households are expecting to be worse off.

The score was above 100 around a year ago, but has been falling in recent months.

Feeling the squeeze


Based on 6,000 interviews across the month, the confidence survey measures attitudes to household finances, property prices, job security and business activity.

Darren Yaxley, from YouGov, said: "With the cost-of-living crisis continuing to rumble on, this data suggests that, perhaps unsurprisingly, consumers' household finances are bearing the brunt.

"Other metrics such as house value, job security, and business activity remain stable for the time being, but it remains to be seen whether these will experience a similar freefall as the country continues to feel the squeeze."

Greater anxiety


Kay Neufeld, head of forecasting at CEBR, said the confidence index was in "freefall, as consumer sentiment now stands at the lowest level in 17 months".

She added: "Worryingly, consumers are also becoming less optimistic on the outlook for business activity going forward, which is likely driven by greater anxiety about a potential recession further down the line."

Sarah Pennells, consumer finance specialist at Royal London, said: "Our cost-of-living research shows that people are already cutting back their spending on food, fuel and energy bills, with only one in 10 people saying they weren't planning any cutbacks.

"While those on the lowest incomes will spend a bigger percentage of their income on household expenses, we found that people across all income bands were worried about higher energy bills."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
×