Consumer confidence in the UK has taken a hit, dropping to its lowest level in over a year as households face rising bills and concerns over US President Donald Trump’s trade policies.
GfK’s long-running index fell four points to -23 in April, with expectations for the wider economy sliding even further, down eight points to -37. The drop comes as families are hit by April’s usual round of price hikes, including council tax, utility bills, and road tax, all while facing warnings that Trump’s new tariffs could trigger a fresh wave of inflation.
Neil Bellamy from GfK said people are feeling the squeeze from all sides. He questioned whether the UK might be heading toward another period of sharply rising prices, just as inflation had started to ease. Inflation currently sits at 2.6%, down from the 2022 peak of 11.1%, but the Bank of England expects it to tick back up to 3.7% this summer before easing again.
“The inflation rate eased in March, but are we now on the verge of another round of rapidly increasing prices? If so, consumer confidence is likely to collapse and the broad gains seen since the disastrous September 2022 minibudget, when confidence hit a record low of -49, could quickly be eroded,” Bellamy said.
Meanwhile, expectations for personal finances over the next 12 months fell by four points to -3, suggesting growing concern about day-to-day spending. With global supply chains under pressure and some firms already signalling price increases, analysts warn that falling consumer confidence could soon hit spending, especially on bigger purchases.