Confidence in UK economy at eleven month low
Confidence in the UK’s economy (36%) has fallen to its lowest level since January 2018 latest figures from the Lloyds Bank Spending Power Report has shown.
Over half (54%) of the UK report pessimism towards current levels of inflation and even more (60%) take a dim view on the current UK housing market.
Despite this, confidence in personal finances is close to the highest ever recorded levels. 65% of Brits feel good about their current situation, just three percent less than the September 2018 high, of 68%.
Over four in five (82%) feel secure in their job and 78% are happy with their level of disposable income.
In fact, 23% of people think they will have more disposable income, in six months’ time. 43% plan to spend that money, 72% will save, and 47% plan to pay off existing debt.
While these figures certainly reflect a perceived uncertain economic environment for many they are some way off the lowest recorded figures set in 2011. In March of that year just 7% were confident in the UK economy (vs 36% in December 2018). Positivity towards inflation dipped to its lowest point in October 2011 to 9% (vs 46% in December 2018), and the following month saw 16% confident in the UK housing market (vs 40% in December 2018).
The research also highlights the continued gap between the optimism of buyers and renters. Over half (51%) of homeowners feel positive about the current level of inflation against just 37% of renters. Homeowners are also more confident with the UK’s employment situation (62% vs 48%), the UK’s financial situation (39% vs 31%), and unsurprisingly, the UK’s housing market (47% vs 30%).