As wages continue to increase by 6% and inflation remains just above 3%, recent data suggests that people are gradually getting better off. However, despite these positive developments, retail figures indicate that consumers remain hesitant to spend. Several factors may be contributing to this reluctance, including unfavorable weather conditions and a lack of confidence in the economy.
In addition, the slow progression of remortgaging rates, which have risen from around 4% previously to inching closer to 5%, may be causing people to prioritize replenishing their household savings over discretionary spending. To encourage increased consumer spending, it is crucial to focus on stability and optimism rather than dwelling on past challenges like the cost of living crisis.
The prospect of England performing well in the Euros this summer is seen as a potential boost to national morale and could provide the spark needed to stimulate economic growth. While it is important not to put too much pressure on the England team, their success on the pitch could translate into a much-needed boost for the economy. By supporting the Three Lions and cheering them on, there is hope that a good performance at the Euros could rejuvenate consumer confidence and lead to an uptick in spending. So come on England – your economy needs a win!