Consumer confidence has fallen for the third month in a row.
A four-point fall in confidence to –25 has taken GfK’s monthly consumer confidence barometer to its lowest level since October 2023.
Declining faith in the UK economy was joined by “significant slides” in shoppers’ perceptions of their personal finances in April, as rising fuel prices warned of coming inflation.
The only measure to rise was consumers’ savings index – an indication of shoppers trying to build contingency funds for coming pressures, according to GfK.
“Consumers really do have the jitters now,” said GfK consumer insights director Neil Bellamy.
“Everyone is grappling with rapid price rises, especially at the fuel pumps, which are taking a dent out of household budgets, and people know further price hikes are coming. The only measure to go up is our savings index, often an indication that people are concerned about what lies ahead, so those who can are building contingency funds.
“Consumer confidence is deteriorating sharply, with fuel prices and threats of more energy price increases acting as constant reminders of inflation. While the Gulf crisis is intensifying pressures, much of the current strain reflects earlier domestic cost increases.”
Earlier this week, both retailers and the FDF urged government to take rapid action to forestall the coming wave of inflation.
BRC economist Harvir Dhillon said: “While higher inflation may deliver the sugar high of greater sales values, volumes are likely to drop as the cost of living squeeze gets worse.
“Government should focus on keeping domestic policy costs down to avoid adding further inflationary pressures, from the Employment Rights Act and new healthy food rules, to non-commodity charges which make up such a large proportion of energy bills.”
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