UK consumer confidence slumped to its lowest levels since 1974, according to a survey, fuelled by Russia’s continued war in Ukraine and surging inflation driven by unprecedented energy prices.
As a recession loomed, the UK consumer confidence index slid two percentage points to -40 in May, the lowest level since records began 48 years ago, GfK research showed on Friday.
“Consumer confidence is now weaker than in the darkest days of the global banking crisis, the impact of Brexit on the economy, or the Covid shutdown,” Joe Staton, GfK client strategy director, said.
Pantheon Macroeconomics economist Samuel Tombs highlighted when the consumer confidence index sank this low (below -30) in the past, “households’ spending dropped” and “recession ensued”.
The survey primarily focused on how the public view their personal finances and wider economic prospects, The Financial Times reported.
This came despite an unexpected rise in retail sales in April, up 1.4%, driven largely by alcohol and tobacco, as revenues remained above pre-pandemic levels.