Consumer sentiment in the UK has taken a hit due to fears over the upcoming budget and gloomy warnings from the government. According to a survey by the British Retail Consortium, households’ assessment of the general economic situation over the next three months has slumped, with older people being particularly affected. This drop in consumer confidence is believed to be a result of negative publicity surrounding the state of the UK’s finances and the possibility of tax rises in the upcoming budget.
Despite the decrease in consumer confidence, expectations for future retail spending have not yet been adversely affected, with many consumers planning to reduce the amount they save instead. The survey also showed a worsening in personal financial situations and a decrease in personal spending overall.
In other economic news, the European Bank for Reconstruction and Development has revised down its growth forecast for Ukraine due to Russian attacks on its energy infrastructure. The attacks have forced Ukraine to rely on more expensive imports, impacting energy-intensive industries in the country. Overall, Europe is facing challenges with high energy prices and a lack of investment, leading to a slowdown in growth across the region.
As consumer confidence remains in a slump and economic challenges persist, experts are calling for increased investment and economic stimulus to boost growth prospects in the UK and across Europe. The upcoming budget and international investment summits will be crucial in shaping the economic outlook and recovery in the region.
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