Skip to content
Search
AI Powered
Latest Stories

Consumers cheer up as Budget nerves lift: GfK

consumer cheer
iStock image
iStock image

British consumers have turned less pessimistic following the government's first budget and the US presidential election and they are showing more appetite for spending in the run-up to Christmas, according to a new survey.

The GfK Consumer Confidence Index, the longest-running measure of British consumer sentiment, rose to -18 in November, its highest since August and up from -21 in October which was its lowest since March.


Economists polled by Reuters had expected a deterioration in the confidence indicator to -22. Neil Bellamy, GfK's consumer insights director, said consumers seemed to have moved past their nervousness in the run-up to the 30 October budget and the 4 November US elections.

Finance minister Rachel Reeves announced a big increase in taxes on 30 October but the burden fell mostly on businesses rather than individuals.

Bellamy said it was too soon to say a corner had been turned. "As recent data shows, inflation has yet to be tamed, people are still feeling acute cost-of-living pressures, and it will take time for the UK's new government to deliver on its promise of 'change'," he said.

All five of the five components of the GfK's survey rose this month, led by a gauge of shoppers' willingness to make expensive purchases which rose five point to -16.

The survey was conducted between 30 October and 15 November and was based on the responses of 2,001 people.

GfK’s survey reported modest improvements in consumer measures of their personal finances and the general economic situation over the next 12 months. The figures clash with a separate survey of 1,500 households which showed growing pessimism over job security, according to S&P Intelligence.

“Consumer confidence continues to be variable but ability to spend depends on household circumstance,” Linda Ellett, UK head of consumer and retail at KPMG, said. “Inflation and interest rates having not yet sufficiently fallen and a toughening labour market are all weighing on the minds of many people.”

The government announced a £20 billion rise in employer national insurance contributions at the budget, as part of its promise not to hit “working people” with extra levies. Labour has also cut back on winter fuel payments for all pensioners, and said it will boost pay for public sector workers this year.

More for you

Cadbury, Mars, and Terry's chocolate products with higher prices and smaller sizes due to shrinkflation.

Shrinkflation hits chocolate prices

iStock image

Shrinkflation hits chocolate prices

Prices of some chocolate products have risen by 50 per cent in a year while many have also shrunk in size, states a recent report, raising the concern of shrinkflation among shoppers ahead of Easter celebrations.

The latest report by Which?, the price of eggs made by big names including Cadbury, Mars and Terry’s have risen by as much as 50 per cent in some cases while some have also shrunk in size, according to research by consumer champion Which?.

Keep ReadingShow less
Tŷ Hywel launch of 2025 ACS Welsh Local Shop Report on March 26
iStock image

New report shows value of Wales' convenience stores

Almost all convenience stores in Wales engaged in some form of community activity last year, shows a latest report, shedding light on the value that Wales’ 3,000+ convenience stores provide as community hubs, local employers of over 26,000 people, and significant contributors to the Welsh economy.

Association of Convenience Stores (ACS) has officially launched its 2025 Welsh Local Shop Report, celebrating the key contributions that Welsh convenience stores make to their communities.

Keep ReadingShow less
UK inflation at 2.8% in Feb 2025 before Rachel Reeves’ budget speech
iStock image

Inflation dips as experts warn of future spikes

British inflation slowed more than expected in February, bringing some relief to consumers ahead of a likely new pick-up in price growth and to finance minister Rachel Reeves before her budget update speech today (26). However, analysts have warned that it inflation will be pushed again soon due to costs arising from the Budget.

Consumer prices rose by 2.8 per cent in annual terms in February after a 3.0 per cent increase in January, the Office for National Statistics said, as clothing and footwear prices fell for the first time in more than three years.

Keep ReadingShow less