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UK consumer confidence slips on rate rise fears and weak jobs
S&P Global said the consumer sentiment index fell to 42.7 in September, while more than 50% of surveyed households expected higher borrowing costs over the next year.
UK consumer confidence weakened as households grew concerned about the risk of higher borrowing costs from the Bank of England and growing insecurity in the jobs market, according to S&P Global data cited by The Guardian Economics.
The S&P Global consumer sentiment index fell to 42.7 in September from 42.9 in August, signaling what the outlet described as a notable strain on financial confidence across UK households. The report also highlighted that the chancellor faces pressure ahead of next month’s budget.
Households surveyed by S&P Global were particularly worried about rates, with more than 50% of 1,500 respondents expecting borrowing costs to rise over the next year. In parallel, the jobs sentiment measure plunged to its lowest level in three-and-a-half years as employers showed caution about hiring.
The article pointed to mortgage-cost pressures already showing up in the data, citing Moneyfacts figures for Monday, including the average two-year fixed residential mortgage rate at 5.88% and the average five-year rate at 5.92%. It said the increase is expected to add about £150 to monthly payments on a typical £250,000 loan over 25 years, and noted average direct debit costs rising from about £600 to £900 over four years.