UK consumer confidence posted its sharpest drop since 2022 last month, reflecting heightened concerns over job security and the rising cost of living, Reuters reported citing a Deloitte survey released on Monday. Deloitte's consumer confidence index fell by 2.6 percentage points to 10.4 per cent in the second quarter – the lowest level since early 2024. The fall marks the first significant decline in sentiment since inflation peaked in 2022 and markets reacted to former Prime Minister Liz Truss's fiscal policies. "Concerns of a slowing labour market have left consumers worried about job security and income growth prospects," said Celine Fenech, consumer insight lead at Deloitte. She added that persistent inflation and high living costs have also dampened sentiment towards personal debt. The survey comes amid rising business anxiety over recent increases in employment taxes, a higher minimum wage, and upcoming legislative changes that could complicate staff dismissals. Official figures last week showed the unemployment rate climbing to 4.7 per cent in the three months to May, the highest since 2021, while inflation rose to 3.6 per cent in June. Despite a slight improvement in perceptions of the overall economy, Deloitte noted this remained nearly 20 percentage points below levels seen a year ago. However, Deloitte's chief economist Ian Stewart pointed to resilience in the business sector, with CFOs reporting improved confidence in the face of global uncertainty. Attribution: Reuters Subediting: M. S. Salama
