empty
25.02.2022 10:01 PM
UK Consumer Confidence plunges

The survey results released on Friday, February 25th, revealed that consumer confidence in the United Kingdom plunged to the lowest levels throughout the pandemic period. Experts note that the British consumers express worried about galloping inflation, as well as higher taxes and interest rates.

UK consumer confidence hits record lows

This image is no longer relevant

About 2,000 people were surveyed in the period from 1 to 14 February. The GfK survey results showed that the consumer confidence index plunged to -26 in February from the previous month's reading of -19. The index hit the lowest level since last January when the British economy suffered from a harsh lockdown.

"Fear about the impact of price rises from food to fuel and utilities, increased taxation and interest rate hikes has created a perfect storm of worries that has shaken consumer confidence", Joe Staton, the GfK client strategy director said.

The worst sentiment of 2022 was noted in relation to personal finance and a broader economic situation.

"There's clear anxiety in these findings as many consumers worry about balancing the household books at the end of the month without going further into debt", Mr. Staton added. He also noted that the UK economic growth may slow down due to the slowing consumer spending.

However, there is room for further declines in consumer confidence. Analysts forecast that the inflation rate rise above 7% in April. It would be the highest rate in the last 30 years. The jump is likely to be caused by a 2-fold increase in domestic energy prices. Besides, experts anticipate a rise in social security contributions.

The Bank of England has already raised its benchmark rate twice since December. Financial analysts expect further hikes to 0.75% in March despite the fact that the central bank forecasts an economic slowdown.

Prime Minister Boris Johnson's government has announced some measures to cushion the blow from higher electricity rates. However, it refused to halt increases in national insurance premiums, saying this measure is necessary to pay for UK health and social services.

The GfK indicator reflecting consumers' readiness to make big purchases declined five points to -15.

Apparently, the Bank of England will be forced to hike the rates again due to rising tensions amid the Russia-Ukraine conflict.

At the time of writing, the pound was trading higher against the US dollar, but the discouraging news may change the trend.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trump shakes Wall Street Again: market indices respond instantly

Trump's remarks on China stir volatile market moves. Ulta Beauty gains after raising its full-year profit forecast. The Dow edged up by 0.1%, the S&P 500 dipped 0.01%

12:44 2025-06-02 UTC+2

US Market News Digest for June 2

May turned out to be the most successful month for the US stock market since November 2023. Although the month was marked by considerable volatility, sparked in part by Donald

Ekaterina Kiseleva 12:14 2025-06-02 UTC+2

Trump Influences Wall Street Again, Indexes React Quickly

Turbulent month, powerful close: The S&P 500 ended Friday's session nearly flat after a volatile day, yet still closed out its best monthly performance since November 2023. The Nasdaq followed

Thomas Frank 08:30 2025-06-02 UTC+2

Boeing climbs, Best Buy falls as investors rebalance across sectors

Best Buy shares fell after the company cut its full-year sales and earnings forecasts. Boeing, on the other hand, gained ground as its CEO announced plans to ramp up production

13:49 2025-05-30 UTC+2

US Market News Digest for May 30

The S&P 500 opened the session on a positive note but soon reversed course after officials clarified that previously overturned tariffs would remain in place pending the outcome

Ekaterina Kiseleva 12:20 2025-05-30 UTC+2

Boeing Gains, Best Buy Falls: Why Investors Are Betting on Different Assets

Best Buy Falls After Full-Year Sales, Profit Outlook Shrink Boeing Gains as CEO Looks to Boost 737 MAX Production Japan's Nikkei Lagging as Yen Strengthens on Safe Haven Demand Indices

Thomas Frank 10:10 2025-05-30 UTC+2

US Market News Digest for May 29

Markets reacted to a US Court of International Trade ruling that found the Trump administration's tariff actions exceeded its authority. The decision has introduced fresh uncertainty for the S&P

Ekaterina Kiseleva 11:15 2025-05-29 UTC+2

Stock storm: Nvidia soars, Dow falls, court knocks down Trump tariffs

Nvidia shares up 5% after close; co reports quarterly results Dick's Sporting Goods rises after Q1 results beat expectations US trade court blocks Trump tariffs European stocks rise

Thomas Frank 10:49 2025-05-29 UTC+2

From Nvidia to Xiaomi: What's Driving Stock Market Growth and Decline Today

Indices Rising: Dow 1.78%, S&P 500 2.05%, Nasdaq 2.47% Consumer Confidence Recovers in May Temu Parent PDD Holdings Falls on Quarterly Revenue Slip Chinese Xiaomi Shares Set to Rise 2.3%

Thomas Frank 12:06 2025-05-28 UTC+2

Whoever doesn't risk a recession doesn't reduce the national debt? Trader's calendar on May 29–31

To be at the center of global attention and to "shape the planet's destiny" — that's what Donald Trump enjoys most. For him, it's essential to constantly generate headlines

Svetlana Radchenko 11:47 2025-05-28 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.