Research shows UK businesses hiring more as consumer confidence lifts
Posted on in Business News , Cycles News
New research has revealed a recent uptick in UK consumer confidence, leading to increased hiring by businesses, with the retail sector responding positively to signs of economic resilience.
The GfK consumer confidence index improved by two points from January to mid-February, moving from -22 to -20, as households expressed greater optimism about personal finances following recent interest rate cuts.
Despite this improvement, concerns remain over persistent high inflation and the continued impact of rising prices on household budgets.
Neil Bellamy, consumer insights director at GfK, said: “The majority are still struggling with a cost-of-living crisis that is far from over. Prices continue to rise above the Bank of England’s target, and energy bills remain a challenge for many.”
The Recruitment and Employment Confederation (REC) reported a 7.2% increase in job postings in January, the first rise since June, suggesting businesses are gaining confidence in the economic outlook. Retail job openings have also grown across all UK regions, with the East Midlands leading at an 11.7% increase.
REC deputy chief executive Kate Shoesmith said: “The increase in job postings is a clear sign that employers will hire when they need to. A 34.4% rise in new job postings signals a solid rebound in demand, showing that businesses remain resilient, despite both domestic and international headwinds.”
The report could provide positive impetus for the independent cycling retail sector, which has faced numerous economic challenges in recent months, including from the Budget announcement in October that ushered in increases in employer national insurance and a reduction in business rate relief, along with supply chain disruptions and changing consumer spending habits.