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Britons turn more pessimistic about outlook for economy By Reuters

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© Reuters. FILEPHOTO: A view of Canary Wharf’s business district as it is dark in London on March 9, 2021. REUTERS/Peter Cziborra

LONDON (Reuters) – People in Britain have turned more pessimistic about the economy amid growing pressure on household budgets from rising energy prices and broader inflation, according to an opinion poll published on Thursday.

Kantar Public’s poll found that 28 percent thought the economic situation would worsen in twelve months, up from 20% August. It fell six percentage points to 24% from those who expected it to be better.

Over half of those surveyed were concerned about their ability to heat their homes this winter. Three in ten said that it was harder for them to maintain their household budgets, which is six percentage points more than August.

Wholesale prices have doubled over the past month, leading to the collapse of several smaller British energy suppliers. The regulated household energy prices will rise sharply in the next month and possibly again in April.

Bank of England last week raised its expectations for inflation to above 4%. In addition, it reduced its estimation of economic growth in third quarter due to bottlenecks in supply chains.

Kantar Public stated that 1,089 individuals were interviewed between Sept. 23rd, and Sept. 27, 2009.

Another report found that businesses experienced slower growth in the 3 months ending September, but activity was higher than its long-term average.

Based on survey results from manufacturers and retailers, the Confederation of British Industry’s balance of growth fell to +27 in August from +34. The biggest drop was in distribution and consumer services.

Anna Leach, CBI deputy chief economic economist said that the private sector’s recovery is slowing this month due to the loss of immediate support from COVID-19 regulations. This was in addition to a mixture of supply chain disruptions and labour shortages.

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