Rising fuel, energy and mortgage costs, together with the prospect of tax increases in this month’s budget, have stalled UK consumer confidence and are squeezing household finances. Increasing numbers of households are borrowing to meet living costs while others are raising savings. Strong GDP on Thursday showed unexpected resilience, but retail activity is weakening and retailers are extending promotions. Consumers are cutting dining out and big-ticket purchases, shifting toward small ‘feel-goo

Rising fuel, energy and mortgage costs, together with the prospect of tax increases in this month’s budget, have stalled UK consumer confidence and are squeezing household finances. Increasing numbers of households are borrowing to meet living costs while others are raising savings. Strong GDP on Thursday showed unexpected resilience, but retail activity is weakening and retailers are extending promotions. Consumers are cutting dining out and big-ticket purchases, shifting toward small ‘feel-good’ spends such as cosmetics and premium supermarket meals. Fading summer/World Cup demand and spillovers from the Middle East conflict are adding pressure to household budgets.