Consumer confidence has declined for the third consecutive month as households experience “jitters” over rapid price increases, according to the latest data.
GfK’s long-running consumer confidence index fell by four points to minus 25 in April, following drops of two points in March and three points in February. This marks the lowest confidence level since October 2023.
Key findings
The deepening concern was primarily driven by perceptions of the UK economy, with confidence in the economic outlook for the next 12 months sliding by six points to minus 43 – its lowest level since February 2023.
Confidence in personal finances over the coming year also deteriorated, falling by five points to minus four, which is one point lower than the same time last year.
The major purchase index, which measures confidence in buying big-ticket items, remained steady at minus 18. However, this is one point better than April last year.
The only measure to show improvement was the savings index, which rose by five points to 32. This often indicates that households are concerned about their finances and are looking to build contingency funds.
Expert commentary
Neil Bellamy, consumer insights director at GfK, commented: “Consumers really do have the jitters now. It is a year since we last saw a monthly drop of this size, and we have to go back to October 2023 to find the last time consumer confidence was lower.
“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.
“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. How long can all this disruption and pain continue?”
