- Consumer confidence in the UK slipped to the lowest in June since August 2020, a new survey has revealed.
- This is also the seventh straight month to witness a fall in consumer confidence due to the cost-of-living crisis.
With the inflation rising in the UK, several of the consumers are forced to cut down on non-essential spending. Households have started to dig into their savings as they are left with less money by the month-end. Some have moved from saving to borrowing to be able to pay for essentials as electricity and grocery bills have soared, resulting in drop in consumer confidence.
The latest survey by pollsters YouGov and the Centre for Economic and Business Research (Cebr) shows that consumer confidence slipped for the seventh month in a row in June. It was also the lowest since August 2020, the figures revealed.
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The monthly consumer sentiment survey found household finances worsened in June amid the cost-of-living crisis. Their outlook for the next 12 months wasn't positive either, hinting at the gloom among the Britons.
On the other hand, the survey's house value index for June saw an increase, showing the confidence around house prices. However, the outlook remained low. Notably, house prices have been hitting all-time highs in recent months with the average house price touching £294,845. So far in 2022, the prices have risen by 6.8% or £18,849, as per the latest house price index from Halifax.
Let us take a look at some London-listed stocks that are likely to be affected due to the falling consumer confidence and analyse their investment prospects.
Next Plc (LON: NXT)
The firm retails in clothes, footwear and accessories and is listed on the blue-chip FTSE 100 index. With a market cap of £8,153.28 million, the stock has depreciated over 19% over the past 12 months. However, investors who entered the stock five years ago for long-term returns haven't been disappointed as it has provided a return of over 75% over the period. Its EPS currently stand at 5.31. Shares of Next Plc were trading at GBX 6,322.00, up 0.35%, as of 08:01 am GMT+1 on 13 July 2022.
Kingfisher Plc (LON: KGF)
The British multinational firm retails in home improvement products through its network of nearly 1,500 stores in multiple countries. The company operates brands like Castorama, TradePoint, Brico Depot, B&Q, Screwfix, and Koctas. The FTSE 100 index, KGF boasts of a market cap of £5,028.86 million. Over the past year, the share value of Kingfisher has slumped by 30.85%, while the year-to-date return stands at -25.21%. As of 08:19 am on 13 July 2022, the shares were trading at GBX 253.00, up 0.16%.
Dr. Martens Plc (LON: DOCS)
Dr. Martens is in the business of designing, manufacturing, and selling footwear, as well as bags and accessories. The company has a presence in multiple regions worldwide, including the UK, US, Europe, Asia-Pacific, and the Middle East. The FTSE 250 constituent holds a market cap of £2,440.54 million at present, and its shares were up 0.98% at GBX 246.40 as of 08:08 am on Wednesday. The share price has witnessed a downward trend in the past one year, and it has fallen by over 45%. The year-to-date return is currently at -42.80%, and the EPS stands at 0.04.
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.