![\"A](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/1684.jpg\")
A chart showing UK consumer senttiment Photograph: S&P Global<\/p>\nUK consumer confidence falls as households worry about debt<\/p>\n
UK consumer sentiment continued to sink this month, as households grow more worried about debt levels.<\/p>\n
A poll of consumer confidence from data firm S&P Global has found that morale continued to drop in February, although not as quickly as in January.<\/p>\n
The report shows:<\/p>\n
Consumers signal stronger rise in debt alongside a quicker deterioration in loan availability<\/p>\n
Appetite for major spending recedes to weakest in ten months<\/p>\n
Sentiment regarding labour market conditions at lowest since last June<\/p>\n
This left the S&P Global UK Consumer Sentiment Index (CSI) at 44.8 in February, up from 44.6 in January, but still below the 50-point mark that shows no change compared with the prior month.<\/p>\n
A chart showing UK consumer senttiment Photograph: S&P Global<\/p>\n
Maryam Baluch, economist at S&P Global Market Intelligence, said:<\/p>\n
\u201cThe mood among UK households matches the dismal weather seen so far this year across the country. Although the overall degree of gloom has lifted slightly since January, consumer confidence continues to run at one of the lowest levels seen over the past two years.<\/p>\n
A period of prolonged rain and a dearth of sunshine have no doubt not helped to lift the low spirits seen among households, but there\u2019s more going on here than just bad weather. Households are growing increasingly worried about debt in particular, especially as a rising need for credit was met with the steepest decline in availability of loans since August 2024.<\/p>\n
Households\u2019 appetite for major purchases was impacted by the lack of confidence and debt worries, with sentiment around big ticket expenditure slipping to the lowest in ten months. The low appetite to spend bodes ill for the broader impetus to purchase, hinting at a sustained drag on economic growth from sluggish consumer spending in the first quarter.\u201d<\/p>\n
Share<\/a><\/p>\n Updated at\u00a004.56 EST<\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n Closing post<\/p>\n Time to wrap up\u2026.<\/p>\n The mood among UK households about their finances is \u201cdismal\u201d, according to research which suggested consumer spending remains sluggish and debts are mounting.<\/p>\n Consumer confidence in the UK is running at its lowest level in two years, a survey<\/a> by S&P Global found, as households worry about their debts, their future financial prospects, and their savings.<\/p>\n S&P said consumers\u2019 pessimism \u201cmatches the dismal weather seen so far this year\u201d and said the recent wet weather<\/a> had \u201cnot helped to lift the low spirits seen among households\u201d.<\/p>\n The UK Consumer Sentiment Index survey, which has been running since 2009, posted a reading of 44.8 in February. Any reading above 50 signals a general improvement in consumer confidence, while anything below suggests a deterioration.<\/p>\n While this month\u2019s index reading was up slightly from 44.6 in January, it remained among the weakest figures over the past two years. The S&P report contrasts with recent business surveys, which have suggested a rise in optimism<\/a> among companies since the start of the new year after uncertainty over the government\u2019s autumn budget<\/a> lifted.<\/p>\n In other news<\/p>\n Share<\/a>Goldman Sachs: 10-year yields to fall to 4% by end of 2026<\/p>\n UK government borrowing costs are likely to fall significantly by the end of this year, Goldman Sachs have predicted today, as political uncertainty eases.<\/p>\n Goldman analyst George Cole predicted that the yield, or interest rate, on 10-year UK bonds will fall to 4% by the end of this year down from 4.4% today.<\/p>\n Cole points out that UK bond yields have risen this year, coinciding with \u201cwith a rise in political uncertainty\u201d (which culminated in Keir Starmer surviving a threat to his leadership last week).<\/p>\n With the upcoming Greater Manchester by-election on 26 February and local elections on 7 May, ongoing political uncertainty is likely to keep the \u201crisk premium\u201d on UK bonds elevated, Cole predicts \u2013 but it should still ease through the year:<\/p>\n Meanwhile, the ongoing decline in macro uncertainty, further disinflation, and the prospects for more BoE rate cuts all tighten the bounds on potential moves in Gilts.<\/p>\n While UK risk premium and political uncertainty will likely remain elevated through upcoming local elections, we think the favourable macro backdrop will drive Gilt yields lower.<\/p>\n Share<\/a><\/p>\n There\u2019s no Wall Street action to excite us today, as the US stock market is closed for Presidents\u2019 Day.<\/p>\n In the absense of a nudge from New York, London\u2019s FTSE<\/a> 100 share index is up 20 points or 0.2% at 10,465 points.<\/p>\n Defence companies continue to lead the risers, following reports that the UK might accelerate its goal of spending 3% of GDP on defence (see earlier post<\/a>).<\/p>\n Daniela Hathorn, senior market analyst at Capital.com<\/a>, says this could give the British economy a lift:<\/p>\n \u201cEconomic research shows that higher government defence spending can have a stimulative effect on activity, especially if it goes into capital investment and domestic supply chains, which boosts jobs and income across related industries. The fiscal multiplier for investment is typically positive, meaning that increased defence outlays could add to GDP growth beyond the nominal spending figure. However, this depends critically on how the spending is financed. If the government funds it through higher borrowing, bond markets could demand higher yields, which might push up government borrowing costs more broadly and weigh on risk assets.<\/p>\n However, while defence spending increases can support sectors tied to military equipment and services, they also raise questions about broader fiscal priorities. If accelerated spending leads to cuts in other areas or pressures on public finances, this could dent consumer sentiment and weigh on growth-sensitive assets. UK consumer confidence is already fragile, with households worried about debt and credit conditions.\u201d<\/p>\n Share<\/a><\/p>\n A majority of City economists expect the Bank of England to cut interest rates at its next meeting.<\/p>\n Reuters has polled 63 economists over the last week, and found that 41 predict the BoE will cut Bank Rate by 25 basis points to 3.50% on March 19.<\/p>\n Share<\/a>Israel’s growth picked up in 2025<\/p>\n We have a third growth report today \u2013 and this one shows that Israel\u2019s economic growth accelerated last year for the first time since the start of the war in Gaza.<\/p>\n Israel\u2019s economy grew 3.1% in 2025, official data showed on Monday, rebounding from a slowdown to just 1% growth in 2024.<\/p>\n Growth last year was led by a 7.1% rise in investment and a 5.9% gain in exports, along with a modest uptick in consumer spending. Heavy state expenditure during the two-year Gaza war, particularly on defence, gave an added boost to the economy, Reuters reports.<\/p>\n Israel\u2019s economy grew at an annualised rate of 4.0% in the fourth quarter of 2025, with GDP supported by a 33% jump in exports following the October ceasefire between Israel and Hamas.<\/a><\/p>\n The Israeli economy grew by 2.1% in 2023 \u2013 the year of the October 7 attack<\/a> \u2013 and 1% in 2024.<\/p>\n Growth is expected to continue in 2026.<\/p>\n Yonie Fanning, chief strategist at Mizrahi Tefahot Bank, said:<\/p>\n \u201cThe economy is recovering.<\/p>\n The indications for the first quarter of 2026 are also positive – you see that in the trade balance data, etc. So I think it … sets the basis for continued recovery.\u201d<\/p>\n Share<\/a><\/p>\n Updated at\u00a008.08 EST<\/p>\n Recent storms have also disrupted UK postal deliveries.<\/p>\n Royal Mail has blamed stormy weather and too many workers being off sick after complaints over missed delivery rounds and late letters.<\/p>\n The strain on the postal service has meant rounds are missed on a daily basis and letters have been left undelivered for weeks, according to the BBC, which cited reports from more than a dozen Royal Mail postal staff at different delivery offices.<\/p>\n Royal Mail said \u201cshort-term disruption to certain routes\u201d was due to \u201cadverse weather, including storms Goretti, Ingrid and Chandra in January, alongside higher than usual sick absence\u201d.<\/p>\n Share<\/a>UK regulator fines Carillion’s former CEO \u00a3237,700<\/p>\n Britain\u2019s financial watchdog has fined the former chief executive of construction firm Carillion almost a quarter of a million pounds for his part in misleading statements before the company\u2019s collapse eight years ago<\/a>.<\/p>\n The Financial Conduct Authority has fined Richard Howson \u00a3237,700, after finding that he had failed to reveal Carillion\u2019s serious financial troubles in company announcements or alert its board and audit committee.<\/p>\n The FCA found that Howson acted recklessly and was knowingly concerned in breaches by Carillion of the Market Abuse Regulation and the Listing Rules.<\/p>\n Steve Smart, executive director of enforcement and market oversight at the FCA, said:<\/p>\n \u2018Carillion\u2019s failure was significant. Jobs were lost, public sector projects put at risk and investors, who trusted the company to give them accurate information, suffered large scale losses. That\u2019s why the FCA worked diligently to hold the company and its senior leaders to account.\u2019<\/p>\n Last month, the FCA fined two former Carillion finance directors \u2013 Richard Adam and Zafar Khan \u2013 for misleading investors before Carillion entered liquidation with \u00a37bn of debts in January 2018, resulting in 3,000 job losses<\/a>.<\/p>\n Share<\/a><\/p>\n Updated at\u00a007.39 EST<\/p>\n Bad weather hits fruit production, but boost Morocco’s wheat outputFruit trees flooded in the Tarn-et-Garonne region in southern France. Photograph: Huchot-Boissier Patricia\/ABACA\/Shutterstock<\/p>\n The wet weather which has been hitting Europe and northern Africa in recent weeks is hurting fruit production, but is good news for wheat farmers.<\/p>\n In Morocco, grain traders are expecting the cereals harvest to double this season after abundant winter rains.<\/p>\n Omar Yacoubi, head of Morocco\u2019s wheat trading federation FNCL, told Reuters:<\/p>\n \u201cWe expect a good cereals harvest this year of 8 to 9 million tons, including around 5 million tons of soft wheat.\u201d<\/p>\n The previous harvest was 4.4 million tons, including 2.4 million tons of soft wheat.<\/p>\n But heavy rain, and floods, have badly damaged fruit farmers in Morocco and Spain, as journalist Harry Wallop shows here on X:<\/p>\n \ud83c\udf53\ud83e\uded0 Noticed a shortage of raspberries, strawberries & blueberries on the supermarket shelf? You could soon. \u2014 Harry Wallop (@hwallop) February 15, 2026<\/a><\/p>\n \ud83c\uddf2\ud83c\udde6 Begnat Robichaud, at iBerry, which supplies most UK supermarkets from Morocco: “It’s an absolute disaster for the area and for our industry. We can’t even access\u00a0our packhouse because\u00a0the village in which it is in is so badly flooded.” \ud83e\uddf52\/3 pic.twitter.com\/9o8UWVupmO<\/a><\/p>\n \u2014 Harry Wallop (@hwallop) February 15, 2026<\/a><\/p>\n Food supply company Fresh Direct has warned that the availability of \u2018multiple products\u2019 will be affected for \u201csome time due to delayed plantings and weatherrelated quality issues\u201d.<\/p>\n Fresh Direct explains:<\/p>\n Poor weather continues across several key European growing regions, with storms and heavy rainfall disrupting both harvest and transport.<\/p>\n This affects quality, availability and logistics, with ferry routes struggling to recover from delays.<\/p>\n Share<\/a><\/p>\n Updated at\u00a007.17 EST<\/p>\n UK’s FRC may allow Chinese auditors to use home standards for London listings<\/p>\n Britain\u2019s auditors regulator is considering allowing firms from China listing in London to apply Chinese Standards on Auditing for UK listing purposes.<\/p>\n It\u2019s all part of the government\u2019s push to boost UK economic growth and increase the competitiveness of London\u2019s financial markets.<\/p>\n The Financial Reporting Council (FRC) says it is consulting on an amendment to its Third Country Auditor (TCA) policy, to temporarily permit auditors of Chinese-registered entities listing Global Depositary Receipts (GDRs) in London to use Chinese Standards on Auditing (CSAs) for UK listing purposes.<\/p>\n GDRs represent shares in a foreign company which are traded on a local stock exchange, allowing investors to get access to the stock without a full-blown primary stock market listing.<\/p>\n Share<\/a><\/p>\n Updated at\u00a008.09 EST<\/p>\n Eurozone industrial output dropped in December<\/p>\n The eurozone\u2019s factory sector ended 2025 with its biggest monthly fall in activity since last April.<\/p>\n Eurozone industrial production fell by 1.4% month-on-month in December, statistics body eurostat reports, led by a decline in capital goods (physical assets such as tools and machinery).<\/p>\n The survey found that industrial production:<\/p>\n decreased for intermediate goods by 0.1%,<\/p>\n decreased for energy by 0.3%,<\/p>\n decreased for capital goods by 1.9%,<\/p>\n increased for durable consumer goods by 0.2%,<\/p>\n decreased for non-durable consumer goods by 0.3%.<\/p>\n Share<\/a><\/p>\n UK households are also pessimisic about their spending plans.<\/p>\n S&P Global reports:<\/p>\n All 12 UK regions and nations recorded reductions in both cash availability and savings.<\/p>\n The steepest falls in cash availability were seen in the East Midlands and Northern Ireland, with the former also recording the quickest decline in savings, followed closely by Yorkshire & Humber.<\/p>\n Share<\/a><\/p>\n UK consumers\u2019 sentiment about debt has hit its lowest level in 23 months, today\u2019s report shows.<\/p>\n S&P Global explains:<\/p>\n UK households indicated a further increase in debt in February, with the rate of accumulation the strongest recorded since last July.<\/p>\n Debt levels rose across all age groups except those aged 25\u201334, where debt stabilised, with the steepest rate of increase among 18\u201324 year olds. Households also expressed a stronger need for unsecured credit in the latest survey period, but the accessibility of loans continued to deteriorate.<\/p>\n Notably, households signalled that the availability of unsecured credit declined at the steepest pace in a year-and-a-half.<\/p>\n![\"Lauren](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/Lauren_Almeida.png\")
Lauren Almeida<\/p>\n
\ud83c\uddea\ud83c\uddf8 \ud83c\uddf2\ud83c\udde6 Devastating storms in Spain & Morocco \u2013 where we get most of our winter berries \u2013 have destroyed polytunnels, flooded farms. 150,000 have been evacuated in \ud83c\uddf2\ud83c\udde6 \ud83e\uddf51\/3 pic.twitter.com\/6ZFpyh78Vg<\/a><\/p>\n