Banmoco News As It Happens

Asda’s chief executive believes that consumer confidence in the UK has shown no signs of improvement and might get worse.

Andy Clarke said today that there isn’t any evidence to suggest that upturns in consumer confidence are on their way. Independent figures released this week on the behalf of the Wal-Mart owned company by the UK’s Centre for Economics and Business Research show that UK households are now £9 per week worse off than they were at the start of 2010, compared with £8 poorer than in December.

Clarke said that ever-increasing taxes, as well as price inflations and ongoing concerns with regards to job cuts denting household budgets, are to blame. I couldn’t expect consumer confidence to start increasing when there are just so many challenges facing the British public these days and I can’t see the situation improving any time soon, he said. Any increases in interest rates will dent spending habits even further, he added, and will put increasing pressure on spending power.

Asda said that it is seeing signs suggesting that customers are being forced to scrimp and save in every way. For example, there has been an increase in shoppers rounding up to the nearest pound when filling their cars with petrol – a telltale sign that times are hard. The supermarket-giant also said that shoppers also continue to stock up on fewer items to fill their cupboards, only buying essential items, and they are also buying more scratchcards.