Consumer confidence slump vs housing boom
February 10, 2022
Households’ confidence in their financial outlook has slumped to its lowest level in more than eight years, according to polling firm YouGov and consultancy Centre for Business and Economic Research.
Households’ expectations for their financial situation in 12-months’ time fell 4.5 points in January to 79.1, the lowest since October 2013. The wider measure of consumer confidence also fell, to 109.0 from 110.0, the weakest since March 2021.
House prices continue to grow, however, helped in part by a shift in property requirements caused by the pandemic and government support for the sector. The YouGov-Cebr house value index for the past 30 days rose 1.8 points to 129.1, the highest since September 2014.
Darren Yaxley, head of reputation research at YouGov, said: "While consumers’ outlook for their household finances has not been as bleak since the autumn of 2013, homeowners’ view of property market has not been this strong since September 2014."
Sam Miley, senior economist at Cebr, said: "This month’s drop in the consumer confidence index highlights the impact of the rising cost of living on household sentiment.
"Consumers’ assessment of their finances over the coming year provides for a particularly stark reading. Rising inflation and the planned uplift to National Insurance contributions are just two likely factors behind this weaker outlook," he said.
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