Survey indicates Brits no longer confident in future
(MENAFN) Consumer confidence in the UK has plummeted to its lowest level since 2023, driven by increasing bills, tax hikes, and concerns that US tariffs could push living costs even higher, according to a survey published on Friday. The consumer confidence index dropped by four points to -23 in April, the lowest it has been in 17 months, and well below economists' forecasted decline to -21.
This index, which ranges from -100 to +100, reflects consumer optimism or pessimism based on responses to key economic questions. Negative readings indicate widespread pessimism, and the latest drop signals growing unease about the UK economy. The index is closely watched by the government and the Bank of England for signs of economic stress.
The sharp decline in confidence highlights how British consumers are struggling with a combination of rising taxes, soaring household bills, and the potential impact of US tariffs. The UK is currently facing a 10% tariff on most goods and 25% on steel, aluminum, and car exports to the US, with ongoing negotiations to revise the trade terms. Although the UK has avoided the full brunt of the tariffs imposed earlier this month, the situation has still dampened consumer sentiment.
Neil Bellamy, director of consumer insights at GfK, explained that households have been hit by a series of price hikes in April, including for utilities, council tax, and road tax. Additionally, concerns about renewed high inflation due to US tariffs have further soured the outlook.
The April reading of -23 marks the lowest level of confidence since the Labour Party took office last summer. On April 1, the UK’s energy regulator, Ofgem, raised the energy price cap by 6.4%, increasing the typical household's annual energy bill to £1,849 ($2,311) from £1,738 ($2,172).
The cost of living crisis, exacerbated by high interest rates and rising energy costs, has forced many families to cut back on spending. At the same time, manufacturers are scaling back production in response to weaker demand from both domestic and international markets.
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