Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Consumers rein in spending as confidence falls to a record low

by October 24, 2022
October 24, 2022
Consumers rein in spending as confidence falls to a record low

Consumer confidence has fallen to a record low as households cut back on leisure spending to save money amid soaring inflation.

Confidence fell for a fifth consecutive quarter to its lowest level since 2011, when Deloitte began its consumer tracker. Sentiment among consumers fell to minus 20 per cent on the index, compared with minus 9.7 per cent in the same quarter last year, as households reduced spending on essential and non-essential goods. Further decline is expected over the Christmas period, usually a strong period of retail sales.

The index found that 30 per cent of consumers are spending less, up from 21 per cent in the previous quarter. Of those, 58 per cent said that they were doing so to save money. The poll, taken on September 17 and 18, shows that confidence had hit a record low even before Kwasi Kwarteng’s catastrophic mini-budget on September 23.

Inflation reached a 40-year high of 10.1 per cent in September, as the soaring cost of energy pushed up the price of goods across the board. It is expected to have risen further this month, after energy bills rose by 27 per cent. The cost of borrowing has also risen as the Bank of England battles inflation, pushing up mortgage repayments. Interest rates have risen from 0.1 per cent last December to 2.25 per cent and another rate rise is expected next month.

More than half, 57 per cent, of consumers are reducing their use of energy at home; 40 per cent are spending less on clothes and shoes; and 39 per cent are cutting down on going out and on leisure activities. Net spending on leisure fell two percentage points in the quarter to minus 12 per cent as consumers limited their visits to restaurants, cafés, pubs, bars and entertainment venues. Twenty-two per cent of respondents said that they had ended, or planned to end, an entertainment subscription such as Netflix or Disney+.

Simon Oaten, partner for leisure at Deloitte, said: “The hospitality industry has been one of the hardest hit in recent years. A reduction in typical festivities or diversion of these to [the] home will almost certainly take the shine off the ‘golden quarter’.”

Read more:
Consumers rein in spending as confidence falls to a record low

0
FacebookTwitterGoogle +Pinterest
previous post
Half of UK shoppers to cut back on spending for Christmas gifts
next post
Better office performance? Give staff a bit more elbow room

You may also like

Mini-budget 2022 highlights: a summary of the key...

September 23, 2022

Thousands of UK Boeing jobs at risk as...

October 13, 2024

Top Trends in the Window Industry: What to...

February 28, 2025

Rats learn to drive miniature cars and show...

November 20, 2024

Wetherspoon on track for ‘record’ year as chain...

May 10, 2023

Packaging tax could be ‘catastrophic’ for small food...

April 28, 2025

Reed Hastings, co-founder of Netflix, steps down

January 20, 2023

Secrets of Success: Adam Root, Founder of Gulp...

November 15, 2022

Inbetweeners actor, James Buckley becomes first UK person...

October 5, 2022

New RMT walkout means three new train strikes...

May 19, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,570)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved