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Equilibrium's finance and investment news roundup

In this week's roundup we bring news of a dip in consumer confidence following the outcome of the general election, new figures suggesting rising inflation is helping to drive UK supermarket growth, claims that cash will continue to be used for decades to come despite the emergence of new technology, and new research highlighting a slowing of personal debt growth in May.

 

Election outcome 'leads to consumer confidence dip'

Consumer confidence fell markedly following the outcome of the general election, dropping to levels not seen since the fallout from Britain's referendum on its membership of the European Union (EU).

According to research from YouGov and the Centre for Economics and Business Research (Cebr), the consumer confidence measure dipped to 105.2 in the 12 days following the election from 109.1 prior to it. Following the EU referendum, the measure fell from 111.9 to 104.3.

The general election resulted in a hung parliament, with the Conservative Party failing to secure a landslide victory that was predicted by many. Douglas McWilliams, Deputy Chairman at Cebr, said: "It looks as though the indecisive result of the election has seriously affected economic prospects already dampened by Brexit uncertainty." 

Kantar Worldpanel: Supermarket growth driven by rising inflation

Rising inflation has helped to drive supermarket growth in the UK, new research from Kantar Worldpanel has found. It was shown that supermarkets enjoyed their highest sales growth in five years across the 12 weeks to June 18.

The findings revealed that sales across the UK's supermarket industry climbed by 5% during this time, with Tesco's sales increasing by 3.5%, Morrisons' rising by 3.7%, Sainsbury's growing by 3.1% and Asda's edging up by 2.2%.

The increases have been helped by grocery inflation of 3.2%, which is up on the 2.9% recorded for May. 

Cash 'will play an important role for decades'

The Chief Cashier of the Bank of England (BoE) has claimed that cash will continue to play an important role in people's everyday lives for years to come, despite the emergence of new technology.

Speaking to mark the 50th anniversary of the ATM, which was unveiled at a Barclays brand in Enfield, London, Victoria Cleland said that cash remains a part of the BoE's future plans despite a reduction in the use of notes and coins in transactions among consumers, BBC News reports.

Ms Cleland explained that 94% of adults in the UK still use cash machines and more than half use them every week.  

Personal debt growth slowed in May - BBA

The British Bankers' Association (BBA) has revealed that personal debt growth slowed in May, reducing to an annual pace of 5.1% from the 6.4% recorded a month earlier.

It was found that borrowing through loans and overdrafts in particular have slowed since the beginning of 2017.

However, the BBA also noted a reduction in saving among the general public, with personal deposits into the UK's major banks growing at their slowest annual growth rate since December 2011.

 

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