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Highlights:
- Inflation hit double digits in July, forcing people to make difficult choices.
- A major chunk of people defaulted on at least one bill last month, data from the consumer group Which? claimed.
The cost-of-living crisis has troubled millions of Brits. Inflation reached 10.1% in July, hitting a new 40-year high. The energy cap is expected to rise further when it will see a revision in October. Almost all things, including essentials like groceries, electricity, fuel etc., now cost significantly more than last year. On the other hand, wages have failed to rise in line with inflation, forcing people to cut down on their expenses.
As a result, just a little over half of the British consumers have expressed satisfaction with their living standards. According to the consumer insights tracker by consumer group, Which? the consumer satisfaction has dipped to its lowest point since 2014.
Image source: © Andreypopov | Megapixl.com
In the survey conducted by Which?, about 7% or 1.9 million British households said they defaulted on at least one bill, rent, loan, credit card, or mortgage payment last month. This number was 4.5% a year ago.
The survey also revealed that only 55% of the consumers are satisfied with their living standards, 39% are content with their household income, and just a little over one-third (34%) are happy with their savings.
The latest data from the tracker indicates that Brits are not very optimistic regarding their future finances and have a gloomy outlook on the economy. About 93% of the respondents told Which? they're worried about the energy prices. Notably, several experts have projected that electricity bills for the average UK household will reach at least £4,500 yearly in January next year.
Let's now check out some stocks that investors can consider in the wake of this information.
SSE Plc (LON:SSE)
The British energy utility firm boasts a market cap of £19,709.52 million and is a constituent of the FTSE 100 index. Its one-year return currently stands at 12.57%, and the EPS is at 2.87. Shares of the company were trading 0.76% lower at GBX 1,832.00 as of 12:06 pm GMT+1 on 24 August.
Standard Chartered Plc (LON:STAN)
Standard Chartered is a leading banking and financial services provider in the UK. It recently announced a $500 million share buyback programme and an interim dividend of 4 cents per share. The stock has climbed 29.87% in the past 52 weeks, and the year-to-date return is 30.33%. Holding a market cap of £17,481.70 million, the company's shares traded at GBX 584.40, down 1.38% as of 12:09 pm GMT+1 on Wednesday.
OSB Group Plc (LON:OSB)
Shares of the specialist mortgage lender were down 0.27% and were trading at GBX 557.50 as of 12:10 pm GMT+1 on Wednesday. The FTSE 250-listed company has provided a return of 11.91% to investors over the past 12 months, and its EPS stands at 0.76. It currently holds a market cap of £2,463.58 million.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
