People feel more confident about their personal finances but still have concerns about the state of the economy.
According to GFK’s consumer confidence index, most people report a rise in confidence in the past year with forecasts predicting further growth in the next 12 months. However, expectations for the economy have decreased over the last 12 months, with further signs of decline in 2016. Office for National Statistics figures show that GDP grew by 0.5% in the third quarter of 2015. Inflation fell to -0.1% in September 2015, with a rise in clothing prices and falling fuel costs as the main contributors.
Joe Staton, head of market dynamics at GFK, says: “The good news on the domestic front – with households lifted by wage growth, low interest rates and near-zero-inflation – is being tempered by concerns about our ability to shrug off the global downturn.”
Safeguarding your finances
As well as concerns over the overall performance of the economy in the future, people may be concerned about the effect that interest rate rises may have on their financial situation.
People who want to try and safeguard their personal finances could consider the following options:
- ISAs allow you to save tax free, with a current maximum allowance of £15,240
- Self-invested pension funds can help you grow your return for increased retirement income.
Talk to our team about your personal finances.