Nearly half of Britons expect economy to worsen: survey
CONFIDENCE in the UK economy sunk lower at the start of the year, according to a survey of consumer sentiment by the British Retail Consortium (BRC).
Some 48 per cent of respondents to the business group’s latest poll said they expect the economy to get worse in the next three months, compared with 42 per cent in December and 38 per cent the month before, the BRC said on Thursday (Jan 23). Fewer than one in six Britons expect conditions to improve.
Some of the UK’s biggest retailers have warned of a tough period ahead, citing the country’s sluggish growth and a sharp rise in taxes that comes into effect in April. Shares in the sector slumped earlier in January.
“With retailers’ tight margins leaving little scope to absorb more costs, many are warning of price rises and job cuts in the coming months,” said BRC chief executive officer Helen Dickinson.
Other recent surveys have painted a similarly gloomy picture. On Monday, S&P Global said its UK consumer sentiment index had fallen to a one-year low, while Deloitte’s survey of chief financial officers showed business optimism fell to a two-year low.
Still, Chancellor of the Exchequer Rachel Reeves said in a Bloomberg interview at the World Economic Forum in Davos on Wednesday that she would boost growth, and argued the outlook was bright, citing an IMF upgrade and a survey by PwC that said the UK is the second-most attractive destination for investment.
The BRC poll was conducted by research group Opinium between Jan 10 to 14 and included 2,000 UK consumers. BLOOMBERG
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