UK consumer sentiment dips as confidence in finances declines
By Benjamin Chiou
Date: Monday 18 Nov 2024
(Sharecast News) - Consumer confidence in the UK edged lower in November, according to the results of a survey from S&P Global on Monday, as falling optimism about job security and a gloomier outlook for household finances weighed on sentiment.
While the S&P Global consumer sentiment index remains elevated by historical standards, the firm said that indicators around consumer spending, debt levels and savings all turned lower this month.
The headline index declined to 46.9 from 47.3 in November, staying well below the key 50-point neutral level but still the third-highest reading since August 2021.
Since reaching a series high in July, the household finances indicator has fallen, with a steady view on current finances weighed down by a deteriorating outlook for households' expected finances in 12 months' time.
The overall labour market sentiment sub-index rose to its highest in four months, though rising confidence about activity at work and incomes was partly offset by a three-month low reading for job security.
"Any intensification of job worries, spurred perhaps the recent measures announced in the Budget, including higher employer National Insurance contributions, could result in a further loss of consumer confidence. This would likely in turn hit consumer spending and economic growth," said Chris Williamson, chief business economist at S&P Global Market Intelligence.
Meanwhile, the spending indicator weakened to a two-month low and the debt sentiment index hit a three-month low.
"Consumer confidence has fallen back since spiking higher in July amid the election buzz, as ongoing pressure on household finances has resulted in squeezed spending, higher debt and lower savings."
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