Why Is It That Consumers Are Planning To Spend Less?

27th January 2025

UK consumers think there's trouble ahead and are cutting their spending as a result. That's the combined fault of the Bank of England and Rachel Reeves, and no one else but them can put matters right.

Consumers in the UK are worried, and I don't blame them.

Consumer surveys are quite important economic tools because they indicate the willingness of the UK consumer to go out and spend money. On the basis of that, businesses can plan the likelihood that they are going to need more or less stock to meet more or less demand from people for whatever it is that they have to offer.

These surveys are also important when it comes to government budgeting. If they're looking for growth, they need consumers to feel confident and consumers in the UK aren't doing that. They are, in fact, indicating at present that their level of confidence is declining, and let's look at why.