Cash Payments Increase as Consumers Grapple with Rising Costs
Cash payments saw a notable uptick for the first time in a decade last year, reflecting the challenges faced by consumers dealing with soaring prices. Nevertheless, debit card usage continued its dominance, constituting half of all transactions, marking its highest-ever level. Consumers often express a preference for managing their finances with cash, yet UK Finance, the organisation that compiled the data, anticipates a decline in cash usage in the coming years once the current economic pressures ease.
Even during the period of rising living costs and the gradual emergence from lockdowns, UK Finance reported that nearly 22 million people used cash only once a month or not at all last year, compared to just under one million who primarily relied on cash.
Debit cards remained the favoured choice for making payments, accounting for 50% of the 46 billion payments made by consumers and businesses last year, according to UK Finance. A significant factor in this preference is the use of debit cards for contactless payments, especially for low-value purchases, replacing the use of coins. The average amount spent per contactless card payment was £15.10. Among consumers, debit cards were used in 57% of transactions.
Deloitte Plans to Cut Over 800 Jobs in the UK
Deloitte, one of the prominent ‘big four’ accountancy firms, is reportedly considering cutting over 800 jobs in the UK as part of a cost-cutting restructuring initiative. The proposed job reductions represent a 3% reduction in the firm’s 27,000-strong UK workforce. While Deloitte confirmed that some roles might be at risk of redundancy, it did not provide specific details.
In a statement, Deloitte CEO Richard Houston said, “Today we announced some targeted restructuring across our businesses, which may – subject to consultation – put some roles at risk of redundancy.”
Oil Prices Rebound on Tight Supply Outlook
Oil prices rebounded as market attention refocused on a tightening crude supply outlook for the remainder of 2023, accompanied by robust demand expectations extending into the next year. Brent crude futures increased by 36 cents to $92.24 a barrel, while U.S. West Texas Intermediate crude (WTI) climbed 35 cents to $88.87.
Oil prices are being supported by a commitment among producers to maintain limited production levels. Saudi Arabia and Russia’s decision to extend oil output cuts until the end of 2023 is expected to result in a significant market deficit in the fourth quarter. The International Energy Agency (IEA) upheld its demand growth estimates for this year and the next. However, the agency cautioned that a lack of production cuts at the start of 2024 could lead to a surplus, with stocks reaching uncomfortably low levels.
Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) maintained its forecasts for robust global oil demand growth in 2023 and 2024. Analysts at ANZ Research noted that the oil market is likely to remain tight in the coming quarters due to persistent supply constraints amid strong demand.
