Consumers "tighten their belt" for 2022
January 22, 2022
Consumer confidence in buying big ticket items like flooring has taken a substantial knock despit the improving Covid situation say retail analysts.
The GfK Major Purchase Index which focuses on major home investments like appliances and furniture took a 4-point turn forthe worst in January after a sustained period of stability.
Joe Staton, Client Strategy Director, GfK says: ““The UK’s financial pulse weakened further this January driven by concerns over personal finances and the general economic situation.
"All five measures are down in January and the picture on the economy is especially bad with an eight-point decrease in how we see the past year and the year to come. Despite some good news about the easing of Covid restrictions, consumers are clearly bracing themselves for surging inflation, rising fuel bills and the prospect of interest rate rises," he said.
"The four-point fall in the major purchase index certainly suggests people are ready to tighten their belts. Will the mood brighten when the latest wave of the pandemic subsides and Covid numbers improve? It seems unlikely because it’s the cost-of-living squeeze that’s worrying us now and this will affect us for months to come.”
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