Nearly £1billion was wiped off the value of Britain’s biggest retailers yesterday amid fears over weakening consumer confidence.
Deutsche Bank said its “fear index” shows households increasingly worried about jobs, inflation and possible tax rises in the autumn budget.
The Times reports that analysts are warning the uncertainty could slow discretionary spending through the rest of 2025 unless consumers dip into savings.
Retail stocks bore the brunt - Primark-owner Associated British Foods fell 4%, Next slipped 0.2% and Asos dropped 1.6%.
However, DIY chains were hit hardest. Wickes slumped 8.6% to a three-month low, while Kingfisher, owner of B&Q, fell 4.3%.
In total, around £965million was lost across six major retail groups.
Separate research from Asda and the CEBR showed middle-income families’ disposable income fell 1.6% in July, the first decline since 2023, while the poorest households saw spending power plunge 11.1%.
FTSE 100
The UK's flagship share index, the FTSE 100, was xx at xx shortly after opening this morning.
Brent crude oil futures were up 0.01% at $66.28 a barrel.
Companies reporting today
- Hochschild Mining: Half Year Results
- JD Sports Fashion: Q2 Trading Statement
- NVIDIA: Q2 Results