Inflation Weighs on UK Consumer Spending Plans

British consumer morale edged lower in February as rising inflation following last year’s Brexit vote made householders warier about the outlook for their finances, surveys showed.

Two separate reports conducted by market research firms GfK and pollster YouGov pointed to increased financial pressure on households in the year ahead. That added to signs that consumer spending – the driving force behind Britain’s economy over the last few years – is starting to wilt as price pressures mount.

GfK’s monthly consumer sentiment index dipped to -6 from -5 in January, in line with forecasts in a Reuters poll of economists. For a second month running, Britons became less enthusiastic about splashing out on major purchases.

Reuters

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