Consumer sentiment in the UK has taken a hit due to fears over the upcoming budget and government warnings, according to a survey by the British Retail Consortium. Confidence in the general economic situation and personal financial situation has decreased significantly, with older generations being particularly affected. Despite this, retail spending expectations remain negative, with consumers expecting to reduce the amount they save instead.
The survey also showed that many people are planning to spend less in shops in the next three months, with categories like fashion, home and garden furniture, electronics, and dining out likely to be most affected. This decrease in consumer optimism comes amidst concerns over the government’s plans for a “painful” budget.
In addition, the European Bank for Reconstruction and Development has revised down its growth forecast for Ukraine due to Russian attacks on its energy infrastructure, which is leading to increased reliance on more expensive imports. The bank warns that this could disadvantage energy-intensive industries in the country.
Overall, the economic outlook in Europe is challenging, with high energy prices, lack of investment, and concerns about inflation and energy security affecting growth prospects. The need for increased investment across the EU to boost long-term growth is emphasized, with discussions ongoing about Europe’s competitiveness and the role of investment finance.
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