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3h ago

UK Consumer Confidence Slips as Budget Jitters Hit Big-Ticket Spending

Households are pulling back ahead of tax decisions that could reshape incomes.

People shop on Oxford Street in London, Britain April 10, 2023. REUTERS/Anna Gordon
Shoppers walk along Regent Street in London, Britain December 27, 2023. REUTERS/Hollie Adams
Christmas displays tempt shoppers in Regent Street, London, but consumers seem reluctant to spend without knowing what the budget has in store
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Overview

  • GfK’s index fell two points to -19 in November, with the survey of 2,003 people conducted from October 30 to November 14.
  • All five measures in the GfK survey declined, which the research firm’s consumer insights director described as a bleak backdrop before the Budget.
  • Households’ willingness to make major purchases dropped by three points, a worrying signal for retailers entering Black Friday and Christmas.
  • Official data show retail sales fell 1.1% in October, with clothing particularly weak as shoppers delayed spending during the crucial Golden Quarter.
  • Pre-Budget reporting points to potential extensions of frozen personal tax thresholds worth an estimated £8–10 billion, while analysts say the government may need £20–30 billion in additional revenue.