Consumer sentiment on state of UK economy echoes CFO’s perceptions of external uncertainty, falling below 5-year average: report
The UK based team Mixing network, a peer-to-peer lending platform, notes that the outlook for the UK’s macroeconomic environment is “getting progressively more positive”.
Blend Network wrote in a blog post that the improvement “is reflected, among other factors, in job postings at an all time high and consumer confidence returning to pre-Covid levels.”
The Deloitte Consumer Tracking reveals that consumers were generally more confident about their “own situation”. They were also “significantly more confident about the state of the UK economy”.
The Blend Network blog post added that in the second quarter of 2021, consumer sentiment “around the state of the UK economy rebounded 23% to move closer to its pre-COVID benchmark.”
While commenting on general trends in politics and the economy, the Blend Network team noted that the food and labor shortage in the UK has “continued to make headlines over the years. last months”. The UK wholesale food industry recently ‘warned that it cannot protect consumers from price hikes forever and that labor shortages will cause prices to rise.’
The Blend Network team added that it was recently revealed that ‘Covid vaccination plans for 12 to 15 year olds across the UK are expected to be announced soon by the government, with a mass vaccination program starting in schools across the country around the end of September.
The Blend Network blog post also mentioned that the Deloitte Consumer Tracker found that consumer confidence “rebounded to its pre-Covid level in the second quarter after a strong rebound in the first quarter.” The index “rose 2% quarter-on-quarter to -9%, its highest annual growth on record, with the improvement in confidence mainly due to improved sentiments about employment and health.” , adds the report.
Consumer sentiment “on the state of the UK economy appears to echo CFOs’ perceptions of external uncertainty which have fallen below the average for the past five years,” the blog noted while adding that the Deloitte CFO’s recent survey found that “only 35% of CFOs now rate the level of external financial and economic uncertainty their business faces as high or very high, similar to the pre-pandemic reading seen in December 2019.”
The blog post further noted that the UK labor market has also “shown signs of a strong recovery”. The Office of National Statistics (ONS) reveals that “the number of job vacancies reached 953,000 in the three months to July, a record as unemployment fell to 4.7% in the three months to June”.
While commenting on the housing market, the blog post noted that UK house prices “continued to rise in August”. Prices were “up 11.0% year on year according to the National House Price Index. “
The blog post added that the rebound in August is “surprising as it seemed more likely that the decline in stamp duty relief in England at the end of June would reduce some of the market heat, but that could reflect strong demand from those buying property priced between £ 125,000 and £ 250,000 and looking to take advantage of the stamp duty relief in place until the end of September.
The Blend Network team added in their blog post:
“Global equity markets continued the momentum they started in the middle of the first quarter throughout the summer, but some indexes started to fall in September. Some of the major global indices such as the S & P500, EuroStoxx50 and The German DAX ended August in positive territory for the seventh consecutive month and even accelerated its uptrend – the S & P500 was up 2.9% in August, its best result since April. But the momentum started to wane in September with many hints in the red so far. “
Sharing the updates on FX & Commodities, the company noted that the average cost of shipping a large standard container (a 40-foot unit) has “exceeded $ 10,000, about four times more than there was. is one year old “. They added that the cash price “for sending such a box from Shanghai to New York, which in 2019 would have been around $ 2,500, is now close to $ 15,000.” And supply chain disruptions linked to Covid “are partly to blame.”