UK consumer sentiment has taken a hit due to fears over the upcoming budget and warnings from the government. The British Retail Consortium reported a slump in households’ assessment of the general economic situation and personal financial situation for the next three months. Older people, in particular, have seen a decline in economic outlook, possibly due to cuts in winter fuel payments for pensioners. Despite this, expectations for future retail spending have not been negatively affected yet. Consumer confidence fell significantly in September, according to the BRC’s Consumer Sentiment Monitor.
In other news, Elon Musk has not been invited to the UK Government International Investment Summit due to his controversial social media posts during the August riots. The summit aims to stimulate economic growth by attracting more spending to the UK. Musk’s comments about civil war predictions and false stories about detainment camps cost him a place at the summit.
The European Bank for Reconstruction and Development has cut its growth forecast for Ukraine due to Russian attacks on its energy infrastructure. This has forced Ukraine to rely on more expensive energy imports, affecting the country’s economic growth.
Overall, the European region is facing challenges with high energy prices and a lack of investment, leading to a downgrade in growth forecasts. The EBRD revised down its expectations for growth this year and next year, citing concerns about energy security, inflation, and trade wars. The need for increased investment across the 27 EU nations is emphasized to boost long-term growth prospects. Various events are scheduled for the day, including reports on German consumer sentiment, US GDP, and speeches by ECB President Christine Lagarde and Federal Reserve Chair Jerome Powell.
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