LONDON: Confidence in the UK economy sunk lower at the start of the year, according to a survey of consumer sentiment by the British Retail Consortium (BRC).
Some 48% of respondents to the business group’s latest poll said they expect the economy to get worse in the next three months.
This compared with 42% in December and 38% the month before, the BRC said in a statement.
Fewer than one in six Britons expect conditions to improve.
Some of the United Kingdom’s biggest retailers have warned of a tough period ahead. They cited the country’s sluggish growth and a sharp rise in taxes that comes into effect in April.
Shares in the sector slumped earlier in January.
“With retailers’ tight margins leaving little scope to absorb more costs, many are warning of price rises and job cuts in the coming months,” said BRC chief executive officer Helen Dickinson.
Other recent surveys have painted a similarly gloomy picture. On Monday S&P Global said its UK consumer sentiment index had fallen to a one-year low, while Deloitte’s survey of chief financial officers showed business optimism fell to a two-year low.
Still, Chancellor of the Exchequer Rachel Reeves said in a Bloomberg interview at the World Economic Forum in Davos on Wednesday that she would boost growth, and argued the outlook was bright, citing an International Monetary Fund upgrade and a survey by PwC that said the United Kingdom is the second-most attractive destination for investment.
The BRC poll was conducted by research group Opinium and included 2,000 UK consumers. — Bloomberg
