Consumer confidence in the economy has hit its lowest point since the pandemic began, as households feel the effects of the cost-of-living crisis, figures show.
Just 8% of consumers think the UK economy will improve over the next 12 months, while 78% think it will get worse. Consumer Intelligence Tracker.
Net confidence in the UK’s future economy is now minus 70, up from minus 47 in May.
Households’ confidence in future finances fell to minus 40 in June – the lowest point associated with the pandemic in March 2020 – from minus 28 in May.
With 58% of consumers saying they’ve had to cut back on essential items or stock up on essential items in the past month, the numbers indicate that household financial strain remains at a high level.
This is up from 57% in May and 59% in April, and is higher than the 40% seen a year ago.
2.1 million households missed or defaulted on at least one mortgage, rent, loan, credit card or bill payment in the past month, according to the survey, marking the sixth month this year in which an estimated two million or more households defaulted. A charge.
Low-income people hit hardest by rising cost of living, research of what? It reports that consumers of all ages, regions and income groups are struggling.
Most consumers across all income ranges said they made an adjustment to cover essential expenses in the past month.
This is most common among consumers in households with incomes of up to £21,000 (64 per cent), but more than half (57 per cent) of consumers surveyed with household incomes above £55,000 have made at least one adjustment.
What? It urged companies to do more to support those struggling to survive and urged Ofgem to “quickly implement its pledge to crack down on energy providers who overcharge people for direct debits”.
Rocio Conza, which one? The director of policy and advocacy said: “Our research shows that the unrelenting cost of living crisis continues to place huge pressure on household finances – with consumer confidence in the economy falling to its lowest level since the pandemic.
“These pressures are particularly evident among the most financially vulnerable – two-thirds of those on incomes of £21,000 or less say they have had to make at least one financial change to cover essentials in the past month.
“Government and businesses must ensure they reach targeted support for the number of consumers struggling to survive.”
