British consumer confidence remains uneven, with a widening gap between households that can afford to spend and those under increasing financial pressure, Tesco

chief executive Ken Murphy said on Thursday.

Speaking after the supermarket giant reported its Christmas trading update, Murphy said spending behaviour showed a clear divide across the UK economy.

“There’s no doubt that consumer sentiment is mixed,” Murphy told reporters. “You are seeing consumers whose household budgets are in pretty good shape, and then you’re seeing a lot of people who are really counting every penny.”

Despite ongoing concerns over the cost of living, Murphy said he took reassurance from the resilience of the UK labour market, which he believes continues to underpin consumer confidence.

“I think employment is the key factor in how consumers feel about the world,” he said.

Murphy added that festive trading showed shoppers were still willing to spend during the holiday season, pushing back against more pessimistic views of consumer behaviour.

“Despite comments to the contrary, people enjoyed Christmas — they spent,” he said. Photo by Derek Harper, Wikimedia commons.