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RTÉ News
2 days ago
- Business
- RTÉ News
UK consumer sentiment suffers first big fall in nearly 3 years, Deloitte says
British consumer sentiment had a marked fall for the first time in nearly three years last month, reflecting increased worries about job security, a Deloitte survey showed today. Deloitte said its consumer confidence index dropped by 2.6 percentage points to 10.4% in the second quarter, its lowest since the first quarter of 2024. The fall was the first since the third quarter of 2022 - when inflation hit a double-digit peak and financial markets reeled from former Prime Minister Liz Truss' budget plans - apart from a 0.2 point decline last year which Deloitte did not view as statistically significant. "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," said Deloitte consumer insight lead Celine Fenech. Businesses have blamed increased employment taxes and a higher minimum wage which took effect in April, as well as planned law changes to make it harder to dismiss new employees, for making them more reluctant to hire. Official data last week showed Britain's unemployment rate rose to 4.7% in the three months to May, its highest since 2021, while inflation picked up to 3.6% in June, the highest since January 2024. The Deloitte figures paint a slightly different picture to Britain's longest-running survey of consumer sentiment, from GfK, which drifted in the second half of last year but rose to its highest since December last month. Deloitte's survey of 3,200 consumers was conducted between June 13 and June 16 and the consumer sentiment index is based on six questions about job security, job opportunities, income, debt, children's welfare, and general health and wellbeing. A separate question about the state of the economy saw a 3.9 percentage point rise in its balance, but it was still 18.4 percentage points lower than a year earlier. "Activity in the UK has slowed in recent months, but an uptick in business confidence seen in the latest Deloitte CFO Survey testifies to continued resilience amid geopolitical uncertainties," Deloitte chief economist Ian Stewart said.
New Straits Times
3 days ago
- Business
- New Straits Times
UK consumer sentiment suffers first big fall in nearly three years, Deloitte says
LONDON: British consumer sentiment had a marked fall for the first time in nearly three years last month, reflecting increased worries about job security, a Deloitte survey showed on Monday. Deloitte said its consumer confidence index dropped by 2.60 percentage points to 10.40 per cent in the second quarter, its lowest since the first quarter of 2024. The fall was the first since the third quarter of 2022 – when inflation hit a double-digit peak and financial markets reeled from former Prime Minister Liz Truss' budget plans – apart from a 0.20 point decline last year which Deloitte did not view as statistically significant. "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," said Deloitte consumer insight lead Celine Fenech. Businesses have blamed increased employment taxes and a higher minimum wage which took effect in April, as well as planned law changes to make it harder to dismiss new employees, for making them more reluctant to hire. Official data last week showed Britain's unemployment rate rose to 4.70 per cent in the three months to May, its highest since 2021, while inflation picked up to 3.60 per cent in June, the highest since January 2024. The Deloitte figures paint a slightly different picture to Britain's longest-running survey of consumer sentiment, from GfK, which drifted in the second half of last year but rose to its highest since December last month. Deloitte's survey of 3,200 consumers was conducted between June 13 and June 16, and the consumer sentiment index is based on six questions about job security, job opportunities, income, debt, children's welfare, and general health and wellbeing. A separate question about the state of the economy saw a 3.90 percentage point rise in its balance, but it was still 18.40 percentage points lower than a year earlier. "Activity in the UK has slowed in recent months, but an uptick in business confidence seen in the latest Deloitte CFO Survey testifies to continued resilience amid geopolitical uncertainties," Deloitte chief economist Ian Stewart said.
The Sun
3 days ago
- Business
- The Sun
UK consumer confidence drops sharply for first time in 3 years
LONDON: British consumer confidence suffered its steepest drop in nearly three years last quarter as concerns over job security and persistent inflation weighed on sentiment, according to a Deloitte survey released on Monday. The consumer confidence index fell by 2.6 percentage points to 10.4% in Q2 2024, the lowest level since early 2024. This marks the first significant decline since Q3 2022, when inflation surged to double digits and financial markets reacted negatively to former Prime Minister Liz Truss's budget plans. Deloitte noted that a minor 0.2-point dip last year was not statistically significant. 'Consumers are increasingly worried about job security and income growth due to signs of a slowing labour market,' said Celine Fenech, Deloitte's consumer insight lead. 'High living costs and inflation have also hurt sentiment around personal debt.' Businesses attribute hiring hesitancy to rising employment taxes, an increased minimum wage since April, and stricter dismissal laws for new employees. Recent official data showed unemployment climbing to 4.7% in May, the highest since 2021, while inflation rose to 3.6% in June. Deloitte's findings contrast with GfK's long-running consumer sentiment survey, which improved last month to its highest since December. Deloitte's survey, conducted among 3,200 consumers between June 13 and 16, measures sentiment across job security, income, debt, and general wellbeing. Despite a 3.9-point rise in economic outlook, the balance remains 18.4 points lower than a year ago. 'The UK economy has slowed, but business confidence remains resilient amid global uncertainties,' said Deloitte chief economist Ian Stewart. - Reuters
Business Times
3 days ago
- Business
- Business Times
UK consumer sentiment suffers first big fall in nearly three years: Deloitte
[LONDON] British consumer sentiment had a marked fall for the first time in nearly three years last month, reflecting increased worries about job security, a Deloitte survey showed on Monday. Deloitte said its consumer confidence index dropped by 2.6 percentage points to 10.4 per cent in the second quarter, its lowest since the first quarter of 2024. The fall was the first since the third quarter of 2022 - when inflation hit a double-digit peak and financial markets reeled from former Prime Minister Liz Truss' budget plans - apart from a 0.2 point decline last year which Deloitte did not view as statistically significant. '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,' said Deloitte consumer insight lead Celine Fenech. Businesses have blamed increased employment taxes and a higher minimum wage which took effect in April, as well as planned law changes to make it harder to dismiss new employees, for making them more reluctant to hire. Official data last week showed Britain's unemployment rate rose to 4.7 per cent in the three months to May, its highest since 2021, while inflation picked up to 3.6 per cent in June, the highest since January 2024. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Deloitte figures paint a slightly different picture to Britain's longest-running survey of consumer sentiment, from GfK, which drifted in the second half of last year but rose to its highest since December last month. Deloitte's survey of 3,200 consumers was conducted between June 13 and June 16 and the consumer sentiment index is based on six questions about job security, job opportunities, income, debt, children's welfare, and general health and wellbeing. A separate question about the state of the economy saw a 3.9 percentage point rise in its balance, but it was still 18.4 percentage points lower than a year earlier. 'Activity in the UK has slowed in recent months, but an uptick in business confidence seen in the latest Deloitte CFO Survey testifies to continued resilience amid geopolitical uncertainties,' Deloitte chief economist Ian Stewart said. REUTERS
Yahoo
01-07-2025
- Business
- Yahoo
German retail sales slip 1.6% in May as consumer spending falters
Germany's retail sales unexpectedly fell by 1.6% in May from April, according to the federal statistics office, surprising analysts who had forecast a 0.5% rise. This marks a sharper drop than the 0.6% decline seen the previous month and raises fresh concerns about the strength of consumer spending heading into the second quarter. Retail figures showed a sharper contraction than anticipated, following a 0.6% drop in April. Economists warn that a recovery in spending is unlikely in the short term, making sustained economic momentum doubtful after strong first‑quarter growth spurred by earlier consumption. Alexander Krueger of Hauck Aufhaeuser Lampe remarked that "[a] large and sustained jump in consumption is not expected for the time being". Consumer mood has cooled, with GfK and NIM surveys recording sentiment at minus 20.3 points for July. The survey of roughly 2,000 households highlighted an increase in saving tendencies amid lingering uncertainty. This cautious stance contradicts government and business hopes that consumption would shore up economic activity as export growth wanes. The dip in retail sales comes ahead of June inflation data, expected later today to show a slight rise to 2.2% from May's 2.1%. Preliminary figures from three key German states—Bavaria, North Rhine-Westphalia and Lower Saxony—suggest inflation eased to around 1.8–2.2%, though Baden-Württemberg saw a minor uptick. Economists view this as a sign of stabilising price pressures that may allow the European Central Bank to hold steady on interest rates. Analysts including Thomas Gitzel of VP Bank say first‑quarter growth is unlikely to be repeated in Q2. With retail sales dropping and consumers hoarding cash, the prospect of a robust second-quarter performance seems remote. While some manufacturing and services activity has returned to growth, domestic demand remains weak. Ultimately, consumer spending drives headline growth in Germany's economy. The unexpected retail sales drop in May, coupled with cautious sentiment and steady inflation, signals that domestic demand may struggle to pick up pace in the near term. That could constrain GDP gains in the months ahead. "German retail sales slip 1.6% in May as consumer spending falters" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
