The recent increase in wages and decrease in inflation have provided some relief for people in the workforce. With pay rising by 6% and inflation hovering just above 3%, the financial load on individuals is finally starting to ease. On top of that, the National Insurance cuts introduced by Jeremy Hunt earlier this year are also contributing to a positive financial outlook for many.
Despite the improvements in personal finances, 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.
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.
With the potential for a good run for England in the Euros this summer, there is hope that a successful performance by the Three Lions could provide 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.