UK client confidence slipped in September, with the GfK index falling to -19 from -17 in August, lacking the Reuters ballot forecast of -18:
- All 5 measures of confidence declined, whereas a separate gauge of financial savings intentions dropped sharply.
- Financial sentiment concerning the outlook stays weak at -32.
GfK warned that expectations of tax will increase in Finance Minister Rachel Reeves’ November price range may drag confidence down additional. Reeves is about to lift taxes on November 26 to remain on observe with price range targets, following final yr’s enhance in employer social safety contributions.
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Softer confidence and looming fiscal tightening add draw back strain on GBP
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Weaker sentiment reinforces expectations for cautious BoE coverage; modest assist for bonds (gilts)
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For equities, consumer-facing sectors may face headwinds if tax hikes additional dampen spending.
This text was written by Eamonn Sheridan at investinglive.com.
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