Households are gripped by a ‘sense of unease’ ahead of the Budget – sending consumer confidence to a four-month low.
Uncertainty over tax changes and the economic outlook are leading to caution about spending, according to the monthly poll from S&P Global.
Separate data from LV= showed families were planning to spend less on Christmas this year as cost of living pressures bite.
And a survey from Barclays showed business leaders have also turned cautious ahead of the Budget, with 55 per cent saying their plans are on hold amid speculation about what Chancellor Rachel Reeves will announce next week.
Maryam Baluch, economist at S&P Global Market Intelligence, said: ‘Consumer confidence has deteriorated across the UK ahead of the upcoming Budget.’
That sent S&P’s consumer sentiment down from 47.4 in October to 45.2 in November, on a scale where anything below 50 signals a decline. It was the lowest since July.
Money worries: Uncertainty over tax changes and the economic outlook are leading to caution about spending, according to the monthly poll from S&P Global
Baluch said households’ increasing pessimism signalled ‘intensifying concerns over their current finances and their future financial wellbeing’.
She added: ‘As we approach the autumn Budget, a sense of unease permeates across households.’
Figures from insurer LV= showed 25 per cent of consumers said they will spend less this year as they feel the squeeze of soaring prices and living costs.
LV= boss David Hynam said: ‘Consumers are clearly adapting to the new economic reality.’
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