A survey by Hargreaves Lansdown found investor confidence in the UK economy has begun to wobble as expectations of interest rates increase dents optimism in the economy.

The HL Investor Confidence Index dropped 2% in as rising inflation outpaces wage increases.

“The number of investors surveyed by HL, who expect interest rate rises in the next six months has fallen back slightly to 78%, compared to 83% in November, possibly reflecting this conundrum, but it’s clear the vast majority of investors are expecting another move by the Bank relatively quickly,” said Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown.

“At the same time there has been a 2% drop in confidence in UK economic growth among investors, with the combined toxic effects of inflation and an income squeeze playing on minds.”

Weakness in housing shares has been notable as investor offloading companies vulnerable to rising interest rates.

Despite dropping confidence in the UK economy, HL found confidence remain buoyant on UK-lsted assets, which may be due to the large proportion of revenue earned overseas by FTSE 100 firms.

“Even so optimism about UK assets has grown, with investor confidence up 4% compared to November with expectation that the weighting of listed companies towards the mining, energy and financial sectors should start to bear plumper fruit. The only sector to register a drop in confidence was North America, which is likely to be as a result of the jitters continuing about the fate of highly valued tech firms in a higher interest rate environment, which would reduce the value of their future earnings,” Streeter said.

HL’s index data comes as the ONS released data pointing to a 1% drop in wages in November whilst the unemployment rate was 4.1%.

However, the UK jobs market has outperformed dooms day forecasts that predicted the end of the furlough scheme would rock the UK economy and cause mass redundancies. Indeed, the number of jobs in the UK is 400,000 higher than before the pandemic.

“Furlough was seen as the cotton wool that cushioned the UK’s jobs market from the ravages of Covid.  The end of the scheme filled many with dread, a fear that those still being protected would find themselves out of work sending unemployment levels soaring,” said Danni Hewson, AJ Bell financial analyst.

“The reality is an intriguing picture with a record level of job vacancies, the number of employees more than 400,000 above that pre-pandemic and the redundancy rate at a record low.  So far so good, but that’s not quite the full story and between the lines is a complex situation that does require careful consideration.”

Hotel Chocolat has posted strong sales and saw revenues increase 37% year-on-year.

Sales were strong all over the world, with 128% growth in the US and 131% growth in Japan. In Japan the customer database has grown by 1000%.

“These results demonstrate that the Hotel Chocolat brand is connecting with more customers, as we invest continually in new product creativity, driving growth across channels and categories, and in our ‘gentle farming’ initiative supporting cacao-farming families,” said Angus Thirlwell, Co-Founder and Chief Executive Officer.

“All of our six growth drivers are behind the acceleration in sales: Velvetiser in-home drinks system, VIP Loyalty rewards, and Digital, whilst the USA, Global Wholesale, and the Japan joint venture are finding the formula for sustained growth, and our UK domestic market still has huge potential.”

Hugo Boss is almost back at pre-pandemic levels after strong fourth-quarter earnings.

Revenues jumped 43% in 2021 to €2.79bn (£2.33bn), which is just 1% below pre-pandemic levels. Fourth quarter sales jumped 55% to €906.

The group has raised its outlook for sales and expects them to grow 40%.

“2021 was a highly successful year for Hugo Boss. We strongly accelerated our sales and earnings development throughout the year and also made first great strides in executing our new ‘CLAIM 5’ growth strategy,” said chief executive, Daniel Grider.

“The upcoming weeks will see further important milestones, with the introduction of our new branding and the launch of the biggest Boss and Hugo marketing campaigns in our Company’s history. Based on these exciting initiatives, we will further drive brand relevancy in 2022.”

Marshalls reported strong results this morning as revenues jumped 26% to £589m.

Compared to the same period in 2019, revenues were up 11%.

“The Group has strong supplier relationships and our centralised procurement team continue to actively manage the supply chain to create flexibility and reduce risk,” said the group in a trading statement.

“Underlying market demand continues to be strong and the business has been experiencing trading volumes that are outperforming the Construction Products Association’s growth forecasts.”

Expectations for the year ending 31 December 2021 have been increased slightly.