Consumer confidence is at its lowest for more than a year after Labour’s tax hikes pushed up prices and cost jobs.
Deloitte’s index of confidence among households hit its lowest since early 2024 as figures last week showed unemployment at a four-year high of 4.7 per cent while inflation has surged to 3.6 per cent.
Celine Fenech, a consumer insight expert at Deloitte, said: ‘Concerns of a slowing labour market have left consumers worried about job security and income growth prospects, while persistent inflation and a high cost of living have negatively impacted sentiment towards personal debt.’
Concern: Deloitte’s index of confidence among households hit its lowest since early 2024
Ian Stewart, chief economist at Deloitte, added: ‘Higher inflation – well above levels in the US and EU – coupled with a weaker jobs market is weighing on consumer sentiment.
‘The UK is unlikely to see inflation returning to the 2 per cent rate that prevailed last summer until well into 2026.’
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
InvestEngine
InvestEngine
Account and trading fee-free ETF investing
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .