UK consumer confidence remained deeply negative in June, with households facing mounting financial pressure from stubborn inflation, job insecurity, and limited access to credit, according to S&P Global's latest Consumer Sentiment Index (CSI) survey. The index edged down to 45.0 from 45.2 in May, staying well below the 50.0 threshold that signals stability. The report, based on a survey of 1,500 households, showed that despite a slight improvement in current financial wellbeing, real purchasing power continued to deteriorate sharply — with cash availability dropping at the fastest pace in 15 months. Rising prices and fading job security contributed to heightened financial caution, even as income and work activity grew modestly. The labour market outlook diverged between sectors: private sector workers expressed optimism, while public sector respondents expected worsening conditions. The squeeze on budgets saw households pull back further on non-essential spending and major purchases. Meanwhile, demand for borrowing rose to a ten-month high, especially among public sector workers, though many households reported greater difficulty securing loans. The gap between rising credit demand and tighter lending conditions is putting additional pressure on household finances. Despite recent rate cuts, access to credit has become more difficult, particularly for the public sector. Expectations for Bank of England policy also shifted slightly, with more households anticipating rate hikes. However, overall sentiment towards monetary policy remains dovish by historical standards. Economist Maryam Baluch of S&P Global said the data may strengthen the case for a rate cut in August, as weak household sentiment and limited spending appetite pose little risk of entrenched inflation. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
