Recently, wages have increased by 6%, and inflation has decreased just above 3%. These improvements have given some relief to people in the workforce. However, retail figures show that consumers are still hesitant to spend money. High streets are struggling to attract shoppers, with sales volumes decreasing when excluding spending on essentials like fuel. Various factors could be causing this reluctance to spend, including poor weather and overall economic uncertainty.
Despite these challenges, the slow process of remortgaging and the gradual increase in fixed rates are also playing a role in dampening consumer confidence. Families were forced to dip into their savings at a record pace last year, leaving many in need of rebuilding their financial buffers. To encourage spending and economic growth, the country needs stability and positive news to boost consumer morale.
The potential for a good run for England in the Euros this summer offers hope for a much-needed boost to the national mood and economy. While it’s important not to place too much pressure on Gareth Southgate and his squad, a successful tournament for England could help encourage spending and get the tills ticking over once again.
In summary, while recent wage increases and inflation decreases have provided some relief for people in the workforce, there is still much work to be done to boost consumer confidence and drive economic growth. The slow process of remortgaging and fixed rate increases have left families with dwindling financial buffers. However, there is hope that a successful performance by England in the Euros could provide a much-needed boost to both the national mood and economy.
To achieve this goal, it’s important that policymakers focus on creating stability through positive news stories that can boost consumer morale. By doing so, they can encourage spending and drive economic growth across all sectors of society.
