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MNI BRIEF: UK Consumer Downbeat As Inflation And Rates Rise

(MNI) LONDON

UK consumer confidence plunged by 7 points to a level of -26 in February, the lowest level since the depths of the pandemic in January 2021 and far below analyst expectations for a modest improvement, according to GfK's latest survey.

The dramatic drop has "raised alarm bells,” Joe Staton, client strategy director at GfK told MNI. “It shows that people are concerned about their financial future. Across the board, prices are going up -- apart from salaries.” The 12-month ahead personal financial situation sub index plunged by 12 points to -14, the lowest level since April 2011, while the major purchase category declined 5 points to -15.

And with taxes and interest rates set to rise over the months to come, along with a darkening geopolitical situation, “I would eat my hat if [things] improved next month,” said Staton. Field work for the March index will begin next week, just days after the Russian invasion of Ukraine early on Thursday.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com

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