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- GFK’s monthly consumer confidence index registered a -22 reading in January
- Neil Bellamy, GFK: “Consumers do not believe that things are changing for better”
Consumer confidence has collapsed to its weakest level in more than a year, while British reinforce their finances before signs of economic fragility.
The last monthly GFK consumer confidence index gave a reading of -22 in January, compared to -17 in December and four points below the -18 planned by a survey of reuters economists.
It was the lowest figure in the index since December 2023 and the largest fall between December and January since 2011.
The five different measures of the survey decreased, and people’s expectations about the general economic situation during the next 12 months recorded the greatest fall of all, falling eight points to -34.
Neil Bellamy, NiQ GFK consumer’s knowledge director, said: “The New Year is traditionally a time of changes, but when observing these figures, consumers do not believe that things are changing for better.”
In addition, the GFK savings index – which is not part of its general consumer confidence index – shot nine points to +30, indicating much greater reluctance among the British to spend on stores.
I am not optimistic: “The New Year is traditionally an era of changes, but when observing these figures, consumers do not believe that things are changing for better,” said Neil Bellamy of GFK.
Bellamy said the increase “is not welcome because it is another sign that people see dark days ahead and, therefore, is thinking of reserving money for their safety.”
The GFK figures continue an avalanche of pessimistic economic news after the increase in taxes in the budget of Foreign Minister Rachel Reeves at the end of October.
As of April, employers’ contributions to national insurance will increase from the current rate of 13.8 percent on annual salaries exceed .
At the same time, the national decent salary will increase 6.7 percent to £ 12.21 per hour, while retail will be reduced by the relief of their commercial rates from 75 percent to 40 percent up to a top of £ £ 110,000 per company.
Many companies have responded to the next changes by cutting jobs or reducing their contracting intentions.
Sainsbury’s announced Thursday that it would fire 3,000 employees, including a fifth of their senior management and those who work in their coffee shops, pastries and pizzerias.
The Morrisons food giant also said that it would eliminate more than 200 positions a month after its executive director, Remi Baitiéh, urged the United Kingdom government to step on the “cost avalanche” that will affect companies after the budget.
Both companies were among the more than 80 signatories of a letter written by the British Retail Consortium in November warning that the loss of jobs and price increases were “inevitable” due to budgetary tax increases.
The figures published earlier this week by the National Statistics Office estimated that the number of salaried personnel throughout the United Kingdom in December was reduced by 47,000 compared to the previous month.
That was higher than the fall of 32,000 registered in November and the greatest decrease in about four years.
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