UK consumer sentiment has taken a hit due to concerns over the budget and government warnings, according to a recent survey by the British Retail Consortium. The survey found a significant drop in consumer confidence in September, with fears over tax rises affecting household assessments of the economic situation.
The survey revealed that older people’s confidence in the economic outlook had suffered, possibly due to cuts to winter fuel payments for pensioners. Despite the negative sentiment, expectations for future retail spending remained relatively stable, with many consumers planning to reduce savings instead.
The survey reported a decline in personal financial situations, as well as negative assessments of the general economic situation over the next three months. This is the second survey in less than a week to show a decrease in consumer optimism, with concerns growing over the upcoming budget.
In other economic news, the European Bank for Reconstruction and Development has revised down growth forecasts for Ukraine, citing attacks on energy infrastructure by Russia. The EBRD warned that Ukraine’s economy is facing challenges due to reliance on expensive energy imports. Additionally, Swiss National Bank has cut interest rates, and credit rating agencies have downgraded Thames Water over concerns about its ability to repay debts.
Overall, the economic outlook remains uncertain, with challenges posed by high energy prices, lack of investment, and geopolitical tensions impacting consumer sentiment and growth forecasts. These developments highlight the need for continued vigilance and adaptation to evolving global dynamics.
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