UK consumer confidence falls at fastest rate since Covid as cost of living bites
Economic fallout from war in Middle East adds to pressures on consumers and on chancellor before budget Consumer confidence in the UK has fallen at the fastest rate outside the Cov
By The Guardian
UK consumer confidence has suffered its sharpest monthly fall since the early Covid pandemic, with households facing renewed pressure from rising costs and the economic impact of the conflict in the Middle East.
The GfK consumer confidence index fell by 11 points in October to minus 24. The measure was at minus 13 in September, its strongest reading since August 2024.
The fall was the biggest since April 2020, shortly after the first coronavirus lockdown. Excluding the pandemic, it was the largest decline since the EU referendum in June 2016.
GfK said no single factor explained the change. It pointed to higher inflation, the conflict in the Middle East and wider pressure on household budgets.
Soaring fuel prices have added to concerns about the effect of the conflict on the cost of living, with consumers becoming more cautious about their finances and the wider economy.
The October reading was the lowest since April and below the forecasts of all economists surveyed by Reuters.
The figures were published ahead of Chancellor John Healey’s budget next week. Healey has said he wants to give households and businesses “breathing space”.
GfK’s survey was carried out between 1 and 14 October and covered 2,003 adults across the UK.