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

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

US Market News Digest for May 28

The S&P 500 index has broken through the key 5,908 level, signaling the end of its recent correction and opening the door to further upside. A break above the resistance

Ekaterina Kiseleva 11:25 2025-05-28 UTC+2

US Market News Digest for May 27

US President Donald Trump announced a 50% tariff on imports from the EU, yet financial markets responded with restraint. Investors are increasingly adopting a "threat and retreat" strategy, buying stocks

Ekaterina Kiseleva 11:54 2025-05-27 UTC+2

Nvidia on the agenda: markets await quarterly report, dollar nears fifth straight monthly decline

Stock markets showed mixed dynamics on Tuesday after Donald Trump unexpectedly postponed the introduction of the promised 50% tariffs on goods from the European Union. The move only increased uncertainty

Thomas Frank 11:31 2025-05-27 UTC+2

Gold at $4,200? Why the Market Is Once Again Preparing for a Historic Rally

The gold market has recently been highly volatile, with dramatic movements in both directions. After breaking above $3,000 per ounce, the metal entered a phase of heightened volatility—testing resistance

Anna Zotova 00:23 2025-05-27 UTC+2

Bitcoin hesitates whether to pull back to $100,000 or climb to $115,000

The world's first cryptocurrency finds itself in limbo. After a recent rally, it pulled back and then settled. At the moment, Bitcoin is at a crossroads, with market participants closely

Larisa Kolesnikova 15:16 2025-05-26 UTC+2

All eyes on Nvidia as markets brace for fresh turbulence

Nvidia's results, the final earnings report from the Magnificent Seven, are set for release on Wednesday. Meanwhile, Donald Trump and European markets are back to square one. The 30-year

12:58 2025-05-26 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.