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3d ago

Consumer Confidence in UK and US Hits Multi-Year Lows as Economic Pressures Mount

Weakened sentiment driven by tariff fears, inflation concerns, and domestic fiscal policies raises alarms about potential economic slowdown.

A heavy goods vehicle moves amongst shipping containers at the Port of Felixstowe in Felixstowe, Britain, February 17, 2025. REUTERS/Chris J. Ratcliffe
Shoppers carrying umbrellas walk past a puddle at Oxford Circus, in London, Britain, January 5, 2025. REUTERS/Hollie Adams
Consumers were unsettled by the instability caused by the threat of a global trade war and by increases in the cost of living
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Overview

  • The GfK Consumer Confidence Index in the UK dropped to -23 in April, its lowest since November 2023, reflecting growing economic pessimism.
  • US consumer sentiment fell to its weakest level since June 2022, with expectations of inflation outpacing wage growth driving unease.
  • President Trump's announcement of reciprocal tariffs, delayed by 90 days, has destabilized markets and heightened fears of global inflationary pressures.
  • UK manufacturing employment saw its sharpest decline in over four years, as higher taxes and tariff-related uncertainties weighed on business outlooks.
  • Economists warn that sustained low consumer confidence could lead to reduced spending, threatening GDP growth in both the UK and US.