Consumer confidence sinks over cost of living crisis - live updates

© Jason Alden/Bloomberg Shoppers’ confidence in the economy and their personal finances suffers worst drop since October 2020 – Jason Alden/Bloomberg

  • Interest rates set to rise as soon as February amid inflation surge
  • Grant Shapps pledges ‘to move heaven and Earth’ to solve fuel crisis
  • FTSE falls after Bank of England inflation warnings
  • Ben Wright: Our complacent leaders are fuelling a cost of living shock
  • Sign up here for our daily Business Briefing newsletter

Sign up to the Front Page newsletter for free: Your essential guide to the day’s agenda from The Telegraph – direct to your inbox seven days a week.

07:38 AM

FTSE 100 opens in the red

Meanwhile the FTSE 100 has sunk 0.24pc at the open to 7,050.7 points as growth worries persisted after yesterday’s warning from the Bank of England that inflation is likely to climb above its previous forecast of 4pc.

AstraZeneca jumped 2.7pc to the top of the main London index after trials of its prostate cancer drug Lynparza showed positive results.

However, retail stocks such as JD Sports (down 2.6pc), industrial miners and life insurers were the top losing sectors.

It comes amid growing worries over energy bills, food costs and tax hikes, which conspired to push consumer confidence in the economy to its steepest fall since October 2020.

Mid-cap index the FTSE 250 fell 0.36pc.

07:26 AM

Shapps: ‘I will move heaven and Earth to solve petrol crisis’

Grant Shapps has said he will move “heaven and Earth” so that petrol and other goods can continue moving around the country easily.

The Transport Secretary earlier blamed the pandemic for the shortage of lorry drivers that prompted BP to shut fuel forecourts that it simply could not reach to stock up.

Now he has told the BBC Today programme:

I’ll move heaven and Earth to do anything that’s required to make sure that lorries carry on moving our good and services and petrol around the country.

I’ll do anything which actually helps. The big query actually is where is the blockage? What we do know is that there are a lot of people who have their HGV licences but many of which will have lapsed to come out of the market, often because there has been cheaper European labour.

We want to get those people back in.

Here’s a chart showing how UK and EU driver shortages have hit Britain’s logistics sector:

07:20 AM

‘Tax hikes, energy bills and a lack of goods to blame’

Linda Ellett, KPMG UK’s head of consumer markets, said the Chancellor’s big tax hike, inflation, rising energy bills and a lack of goods on shop shelves have all conspired to deal the blow to households’ outlook.

She added:

It’s impossible for consumers to ignore the challenges all around us.

Now is also the time that many retailers are ramping up for the festive season. It remains to be seen quite how many challenges they face and how this will be received by consumers, who are preparing to spend big after last year’s cancellations, but who may be left frustrated by a lack of choice and availability.

The grocery industry has been preparing some time for the months ahead, and retailers are having to make bold and often difficult decisions to ensure that the best possible products and shopping experiences will still be available at Christmas – even if that means cutting product lines temporarily for now.|

We will need to wait and see whether confidence takes a further knock due to this lack of choice. After last year’s muted festivities, families may decide to go all-out with the quality of their gifts and Christmas dinner, rather than quantity, and the Christmas spirit may override frustration caused by limited choices.

07:06 AM

Cost of living crisis blow to consumer confidence

Consumer confidence has plunged amid increasing anxiety about the rising cost of living, a long-running survey suggests.

PA has the details:

GfK’s Consumer Confidence Barometer fell by five points to minus 13 in September, a drop not seen since October last year.

All measures of the survey, including confidence in the general economic situation and personal finances, were down in comparison to last month.

The index also recorded a three-point drop to minus six in the major purchase index, an indicator of consumer confidence in buying big ticket items, in worrying news for hard-pressed retailers looking to build sales as they go into the key holiday period.

Confidence in personal finances over the last 12 months dropped four points to minus four, while the forecast for the next 12 months fell six points to five – although it remains four points higher than this time last year.

Expectations for the general economic situation over the coming 12 months fell 10 points to minus 16, but is still 22 points higher than September last year.

GfK client strategy director Joe Staton said: “On the back of concerns about rising prices for fuel and food, the growth in headline inflation, tax hikes, empty shelves and the end of the furlough scheme, September sees consumers slamming on the brakes as those already in economic hardship anticipate a potential cost of living crisis.

“All measures have declined this month and consumers are clearly worrying about their personal financial situation and the wider economic prospects for the year ahead.”

“When consumer confidence drops, shoppers tend to spend less, and this dampens the overall economic prospects for the UK. This really is an unwelcome picture going into 2022 and beyond.”

06:50 AM

Shapps tells motorists to ‘carry on as normal’

© BEN STANSALL/AFP via Getty Images Mr Shapps blamed the pandemic for the shortage of drivers and said Brexit was not part of the problem – BEN STANSALL/AFP via Getty Images

Transport Secretary Grant Shapps has told motorists to “carry on as normal” after BP was forced to close petrol stations yesterday owing to a lack of lorry drivers to deliver fuel.

Mr Shapps told Sky News: “The advice would be to carry on as normal, and that is what BP is saying as well.

“They describe it on the average day that they have a handful of petrol stations that they had to close out of 1,200.

“The problem is not new. There has been a lack of drivers for many months through this pandemic because during the lockdown drivers couldn’t be passed through their lorry HGV tests, and that is what has led to this problem.

“But many more tests are being made available now, so we should see it smooth out fairly quickly.”

The minister denied that Brexit was part of the problem for recruiting HGV drivers in the UK, instead arguing that being divorced from the EU had helped enable some of the solutions.

 “I’ve seen people point to Brexit as if it is the culprit here. In fact, they are wrong,” Mr Shapps said.

“Not only are there very large and even larger shortages in other EU countries like Poland and Germany, which clearly can’t be to do with Brexit, but actually because of Brexit I’ve been able to change the law and alter the way our driving tests operate in a way I could not have done if we were still part of the EU.

“So, Brexit actually has provided part of the solution of giving more slots available for HGV tests and there are a lot more – twice as many – tests available now than before the pandemic, a large proportion of those we’ve only been able to do because we are no longer in the EU.”

Instead he blamed the pandemic, calling the driver shortage a “global” issue, adding: “Europe is hit particularly bad.”

“We’ve got, for example, in Germany a 60,000 shortage and Poland a 123,000 shortage of lorry drivers, so as I say it is the principal cause of the problem and we are working very hard to change it, including changing the law in order to provide more tests for HGV drivers and encouraging people back into the market.

“There are longer-term problems, which is that it is difficult – it is a long day’s work, it is hard work, it is a skilled job and, actually, it has been underpaid up until now, so we very much welcome the salary going up, the wages going up, and that’s attracting more people back to the sector.”

06:23 AM

FTSE 100 to inch higher

Good morning.

The FTSE 100 is expected to inch higher this morning after yesterday’s climb was cut short by the Bank of England’s warning that inflation will be even higher than its 4pc forecast amid the ongoing supply chain crisis.

That sent the pound soaring 0.6pc against the dollar yesterday as London’s main index ran out of steam, falling to 7,078.35 points by the close of trading.

Today it is set to open 0.16pc higher to hit 7,088 points after Germany and France bourses posted close to 1pc gains.

Michael Hewson, chief market analyst at CMC Markets, said: “Yesterday saw another positive day for European markets, rising for the third day in a row, shrugging off early week concerns about the Chinese property market, and despite evidence that the wider economy is slowing, due to increasing supply chain constraints.  

“The FTSE100 did its best to reprise its role as the perennial party pooper, sliding back from its intraday highs, to finish in negative territory, which in some part may have been down to the sharp rise in the pound, and gilt yields.

“Nonetheless markets in Europe, as well as the US are now back in positive territory for the week, a scenario that didn’t look very likely back on Monday, when fears of an Evergrande bankruptcy had investors circling the wagons.”

5 things to start your day 

1) Interest rates set to rise as soon as February amid inflation surge: The Bank of England has been forced to revise up its inflation forecasts as surging energy costs, labour shortages and chaos in the supply chain hold back Britain’s recovery from Covid.

2) Alarm as petrol stations begin rationing fuel: Motorists were warned on Thursday night of shortages at fuel forecourts as BP announced it was closing pumps and rationing petrol and diesel because of a lack of lorry drivers.

3) George Osborne brings in Russian oligarch to his new investment bank: George Osborne has won his new investment bank employer a role advising EN+, the Russian metals giant founded by Oleg Deripaska, according to reports.

4) British Airways abandons plans for new budget airline at Gatwick: British Airways is poised to scrap almost all short-haul flights from Gatwick after pilots rejected the carrier’s plan to set up a new budget airline and hand them sweeping pay cuts.

5) Ford considers Halewood plant over Germany for EV systems: Ford is weighing up whether to build transmission systems for electric cars at its Halewood plant on Merseyside rather than at a site in Germany.

What happened overnight 

Asian shares were on edge on Friday, hurt by persistent uncertainty around the fate of debt-ridden China Evergrande, even as more risk appetite drove gains for Wall Street and US benchmark Treasury yields.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.1pc and was set for a weekly loss of 0.68pc. Australian shares fell 0.41pc, while the Hong Kong benchmark was mostly flat.

Japan’s Nikkei rose 1.93pc, however, catching up on global gains after a public holiday. Chinese blue chips reversed early losses to gain 0.6pc after a cash injection from the central bank.

Investors continue to worry about the fate of property developer China Evergrande, which faces an interest payment deadline due Thursday. Its shares fell 5.2pc on Friday after bouncing 17.6pc a day earlier.

Coming up today

  • Economics: CBI retail sales survey (UK); new home sales (US)
Internet Explorer Channel Network
News Related


Erika Jayne is dating again amid legal troubles

Erika Jayne is putting herself on the market again.  “The Real Housewives of Beverly Hills” star is dating again, as she’s been on a “handful” of dates in Los Angeles, ... Read more »

9 best air purifiers for your home to help with allergies in 2021

Getty Images/iStockphoto Achoo! Bless you, and bless having a good air purifier this year to deal with allergy season. Now that it’s cool enough to crack a window and save ... Read more »

The Cutest Christmas Cards and Holiday Cards to Send This Year

© Paper Source The thrill of receiving a meaningful card or email from someone special is pretty incomparable. And few have depicted it better than Meg Ryan‘s character, Kathleen Kelly, ... Read more »

Alec Baldwin's Wife Hilaria Addresses Fatal On-Set Shooting

© ET Alec Baldwin‘s wife, Hilaria Baldwin, is grieving for both cinematographer Halyna Hutchins and her husband after Hutchins’ tragic death. In a statement on Instagram on Monday, Hilaria addressed ... Read more »

Look: Emirates airline turns 36; key milestones from the airline's incredible journey

© Provided by Khaleej Times Look: Emirates airline turns 36; key milestones from the airline’s incredible journey Dubai’s flagship carrier Emirates was launched on October 25, 1985. On Monday, the ... Read more »

SNL sketch with Jason Sudeikis trolled Kyrie Irving vaccine stance

Brooklyn Nets point guard Kyrie Irving and his vaccine stance became a punchline in an SNL skit featuring Jason Sudeikis. © Provided by Fansided Jason Sudeikis has mastered the art ... Read more »

Charles Barkley Names 1 Major Problem For The NBA

There’s been a major player empowerment movement in the NBA in recent years. Star players have been taking more control of their futures, often forcing their way out of franchises ... Read more »

Minimum wage increase will not offset end of universal credit uplift for struggling families, experts warn

The inflation-busting increase of the minimum wage to £9.50 an hour does not offset cuts to welfare relied on by low-income earners, experts have warned. Full-time workers will get a ... Read more »

Population of endangered right whales drops near 20-year low

Another bad sign for the whales. Despite the North Atlantic right whale population reporting its highest birth rate in several years in early 2021, the total population of the endangered ... Read more »

El Chapo ‘jury misconduct' warrants new trial for drug lord, attorney argues

El Chapo was sentenced to life in prison plus 30 years following his conviction on a slew of drug-trafficking charges in February 2019. Eduardo Verdugo/AP A federal appeals court panel ... Read more »

Budget 2021: Putting up wages is not enough to solve the cost of living crisis alone

Off the back of 18 months of economic hardship, and with bills and taxes on the up, the decision to increase the minimum wage by 6.6 per cent was welcomed ... Read more »

Nuggets vs. Cavaliers odds, line, spread: 2021 NBA picks, Oct. 25 predictions from proven computer model

The Cleveland Cavaliers. (1-2) travel to Denver, Colo. to take on the Denver Nuggets (2-0) at 9 p.m. ET on Monday, October 25 at Ball Arena. The Cavs notched their ... Read more »

Bulls vs. Raptors odds, line: 2021 NBA picks, Oct. 25 predictions from proven computer model

The Chicago Bulls will take on the Toronto Raptors at 7:30 p.m. ET on Monday at Scotiabank Arena. Toronto is 1-2 overall and 0-2 at home, while the Bulls are ... Read more »

Celtics vs. Hornets odds, line: 2021 NBA picks, Oct. 25 predictions from proven computer model

The Charlotte Hornets will take on the Boston Celtics at 7 p.m. ET on Monday at Spectrum Center. The Hornets are 3-0 overall and 1-0 at home, while Boston is ... Read more »

Fantasy Basketball Waiver Wire: Pickups for Week 2 of the 2021-22 NBA season

The 2021-22 NBA season has tipped off and fantasy basketball season is underway with the first week behind us. Of course, star players like Giannis Antetokounmpo, Stephen Curry and Kevin ... Read more »

Richard Jefferson Reveals His Problem With Former NBA Ball Boy

© Provided by The Spun Richard Jefferson on the court for the Cleveland Cavaliers. Longtime NBA forward and current ESPN analyst Richard Jefferson has responded to a viral video from ... Read more »

North Carolina's $25 reward helped boost COVID vaccinations

© Provided by Associated Press Virus Outbreak-North Carolina RALEIGH, N.C. (AP) — What works and what doesn’t when it comes to encouraging people to get vaccinated against COVID-19? A new ... Read more »

Kevin Smith reveals how he created the ICONIC 'Bennifer' nickname for Ben Affleck & Jennifer Lopez

© Provided by Pinkvilla Director Kevin Smith has recently revealed major information regarding lovebirds Jennifer Lopez and Ben Affleck. During his interview with The Daily Beast, via US Weekly, Smith ... Read more »

MacOS Monterey compatible devices: Will your Mac work with Apple's new OS today?

MacOS Monterey, Apple’s newest Mac operating system, arrived Monday. The software, also known as MacOS 12, will run on the new laptops announced at Apple’s event on Monday— both the 14-inch and 16-inch MacBook ... Read more »

VALORANT player records reaction after hitting Immortal rank

© Provided by Dot Esports A VALORANT player recently recorded their reaction after they reached the Immortal rank for the first time, showing how exciting hitting one of the highest ... Read more »

Sony WF-1000XM3 Wireless Earbuds

The Sony WF-1000XM3 True Wireless headphones have a lot to live up to: Launched as part of the brand’s lauded 1000X family of noise-cancelling headphones – that includes the award-winning ... Read more »

Best iPad deals 2021: cheapest iPad Air, iPad Pro and iPad Mini prices

Apple’s iPads are some of the best tablets around. And with a range of models at various price points, there’s something for everyone. Here we’ve rounded up the best iPad ... Read more »

How a Slain Teen Known as 'Horseshoe Harriet' Was ID'd Decades After Her Murder by a Serial Killer

A teenager who was murdered 38 years ago in Alaska by a serial killer has finally been identified. © Provided by People AP/Shutterstock Robin Pelkey The Alaska Bureau of Investigation ... Read more »

Fresh understanding into antibiotics could pave way for new treatments

Scientists have uncovered the precise way a type of antibiotic works to attack bugs, which could potentially pave the way for new treatments. Researchers have found the mechanism which allows ... Read more »

Racists bearing swastikas hijack Zoom service at synagogue featured in BBC Nazi drama

Manchester Reform Synagogue – Tony Smith/Alamy The synagogue featured in the BBC’s new Nazi drama had its Zoom service hijacked by racists bearing swastikas, prompting a police investigation. Greater Manchester ... Read more »

Ohio records more deaths than births for first time in state history

Ohio recorded more deaths than births for the first time in history last year, with over 10,000 more people dying than were born in the state in 2020. © The ... Read more »

Texas Man Sentenced to Life in Prison for Beating Toddler to Death After She Put Her Shoes on Wrong Feet Days Before Her Birthday

© Provided by Law & Crime Jadin Nunez Jadin Nunez A judge in Texas sentenced a man to spend the rest of his life behind bars after he was convicted ... Read more »

Edinburgh Garden of Remembrance opening service sees 96-year-old war veteran James White lay wreath

© James White, 96, lays the Legion Scotland 100 Centenary wreath at the Garden of Remembrance today wi… Let us know what you think and join the conversation at the ... Read more »

Budget 2021: Furious Speaker Sir Lindsay Hoyle suggests ministers should resign over raft of announcements before Rishi Sunak's address to MPs

"At one time ministers did the right thing if they briefed before a budget - they walked," an angry Speaker tells MPs after a weekend dominated by a raft of announcements. Read more »

NHS could face 'epidemic of empty wards' if £5.9bn Budget boost doesn't get more staff

Newly announced funding for NHS facilities and tests could be “wasted” unless staff retention and recruitment improves, MPs have warned. The Government has announced an additional £5.9 billion package of ... Read more »

Top five Covid hotspots revealed as cases rise by nearly 37,000

© AP Some 68 per cent of areas in the UK have seen a rise in cases – AP New data has revealed the latest five Covid hotspots in the ... Read more »

UK haulage industry tells PM to act on supply chains or face Christmas crisis

© Provided by The Guardian Photograph: Phil Wills/Alamy The haulage industry has urged Boris Johnson to step up “lacklustre” efforts to tackle a shortage of 100,000 HGV drivers, telling him ... Read more »

Conviction of Mexican drug lord 'El Chapo' should be thrown out, lawyer argues

© Reuters/Henry Romero FILE PHOTO: Recaptured drug lord Joaquin “El Chapo” Guzman is escorted by soldiers at the hangar belonging to the office of the Attorney General in Mexico City ... Read more »

Why are real guns still used on film sets? In wake of 'Rust' shooting, their future is in question

 "Any risk is too much risk," one TV producer said. Read more »

Tourist Finds Water Bottle Matching Gabby Petito's Near Where Brian Laundrie's Remains Were Discovered

© Photo: Twitter / YouTube Water Bottle, Brian Laundrie, Gabby Petito Online sleuths who have been closely following Gabby Petito’s case are taking the investigation into their own hands after ... Read more »

Court records: Suspect shot victim during hair cut at Dayton barbershop

Oct. 25—A Dayton man is accused of entering a barbershop and shooting a man while he was getting a hair cut last week. Deelaquan Smith, 20, was charged with two ... Read more »

Will Rishi Sunak's national living wage rise really help ease the cost of living squeeze?

Photograph: Alamy With a severe cost of living squeeze hitting Britain this winter, Rishi Sunak is betting that an increase in the minimum wage will dispel criticism that the Tories ... Read more »

U.S. gets consent decree in harassment suit against owners of Minneapolis rental properties

(Reuters) – The U.S. Justice Department said it obtained a consent decree with Reese Pfeiffer and several other defendants to resolve allegations that Pfeiffer violated the Fair Housing Act (FHA) ... Read more »

Review: Mavix's M7 Gaming Chair Gets a Good Boost With the Elemax

© Courtesy of Mavix Mavix Elemax Gaming Chair Addition Part of the reason I initially loved the M7 is because of the issues I have with my back. The incredible ... Read more »

These Christmas lights will save you money on your energy bill

© Pabipabi / Quwin / JMExsuss These Christmas lights will save you money on your energy bill — Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our ... Read more »
On you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic