British shares started the week lower, with the FTSE 100 closing 0.24% in the red on Monday, as fresh data pointed to a decline in household spending ahead of the Autumn Budget announcement on Nov. 26.
Consumer confidence in the UK fell to a four-month low, with households more concerned about their current and future finances, according to a survey by S&P Global. The S&P Global UK Consumer Sentiment Index declined to 45.2 in November from 47.4 in October.
“As we approach the Autumn Budget, a sense of unease permeates across UK households, who are keenly awaiting the Chancellor’s forthcoming decisions,” said S&P Global Market Intelligence Economist Maryam Baluch. “Many households are grappling with uncertainty regarding potential changes in taxation, public spending, and economic forecasts that could significantly impact their financial wellbeing. This cautious sentiment also reflects broader concerns about inflationary pressures and the cost-of-living.”
Before the budget, market participants will examine the UK’s October inflation on Wednesday, followed by retail sales, borrowing data, and the November PMI figures on Friday.
“After a downside surprise in September, we think inflation will likely step up to start Q4-25,” said Deutsche Bank Research. “Why the increase? Larger rises in airfares and university fees, we think, will push inflation up a leg – but we expect this to mostly unwind in November… On our projections, we see headline CPI at 3.68% y-o-y, with core CPI at 3.57% y-o-y.”
In corporate news, communications group WPP (WPP.L) surged 11.03% to the top of the blue-chip index after a Sunday Times report noted high-level discussions taking place at its French peer Havas for a potential deal.
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