UK consumer confidence has strengthened to its highest level since January 2022, boosting optimism over Britain’s economic prospects over the next 12 months, according to the closely-watched GfK Consumer Confidence Index.
The FTSE 100 will open at 8am. Among the companies with reports and trading updates today are BHP, Superdry, WH Smith, Motorpoint and Wickes. Read the Friday 26 January Business Live blog below.
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Consumer confidence at its strongest for two years
UK consumer confidence has strengthened to its highest level since January 2022, boosting optimism over Britain’s economic prospects over the next 12 months, according to the closely-watched GfK Consumer Confidence Index.
Linda Ellett, the UK head of consumer, retail and leisure markets for KPMG, said: ‘While inflation and interest rates are gradually reducing, prices are still increasing and consumers are seeing costs still going up.
‘Many people still face the prospect of large jumps in their mortgage when their fixed deal ends this year. And even more face higher costs for the likes of insurance premium renewals, or in-contract increases for mobile and broadband provision.
‘Household spending power is still gradually being eroded and in this environment it is little surprise to see that there is limited appetite for spending dwindling savings on major purchases, except perhaps – for those who can afford to – to temporarily take a break from it all on holiday.
‘In KPMG research, households feeling worse about their financial security outnumber those feeling more secure by almost two to one.’
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BUSINESS LIVE: Consumer confidence boost; BHP faces £25bn court claim; Superdry losses widen
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