Consumer confidence drops  

Consumer confidence dropped in April to the lowest level in over a year due to concerns over global trade and rising living costs, the GfK consumer confidence index has shown. The reading fell by four points to minus 23 in April, the lowest point since November 2023.

Findings showed the reading was brought down by pessimism about the trajectory of the economy following the announcement of US tariffs and subsequent impact this had on stock markets. In addition, the increase in the cost of living, including a rise in council tax, water and energy bills contributed to the decline.

Neil Bellamy, Consumer Insights Director at GfK, an NIQ Company, said “Headline confidence is down four points in April, led by two sharp drops in our economic measures. There’s an eight-point fall from -29 to -37 in how people see the wider economy in the coming year, and a five-point dip for the past year’s economic performance.

“The future indicator on personal finances has also slipped badly, dropping four points to -3. There are good reasons for this downturn. Consumers have not only been grappling with multiple April cost increases in the form of utilities, council tax, stamp duty, and road tax, but they are also hearing dire warnings of renewed high inflation on the back of the Trump Tariffs. 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.”