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4h ago

UK Consumer Confidence Plummets to Lowest Point Since April

Higher inflation driven by rising energy costs tightens the fiscal choices facing Chancellor John Healey.

Lars Klingbeil, Vice-Chancellor of Germany, John Healey, British Chancellor of the Exchequer, and Jim Chalmers, Treasurer of Australia, interact at the IMF/World Bank 2026 Annual Meetings at Queen Sirikit National Convention Center (QSNCC) in Bangkok, Thailand, October 15, 2026. REUTERS/Athit Perawongmetha
A petrol pump meter with the price of £2.89 per litre is displayed on a pump at a fuel station as prices rise, in London, Britain, October 22, 2026. The station's fuel prices are above average compared with many other filling stations in Britain. REUTERS/Jack Taylor REFILE – ADDING INFO.
A diesel pump meter with the price of £2.99 per litre is displayed on a pump at a fuel station as prices rise, in London, Britain, October 22, 2026. The station's fuel prices are above average compared with many other filling stations in Britain. REUTERS/Jack Taylor REFILE – ADDING INFO.
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Overview

  • GfK's consumer confidence index fell 11 points to minus 24 in October, the survey showed, based on 2,003 adults polled between October 1 and October 14.
  • The month-on-month drop was the largest since April 2020 and, excluding the pandemic period, the biggest move on this scale since the June 2016 Brexit vote.
  • GfK said no single factor explained the slump and cited rising inflation, higher energy and fuel prices tied to Middle East tensions, and a squeeze on household budgets as key contributors.
  • Household indicators fell sharply with appetite for big-ticket purchases at a more than two-year low and consumer inflation expectations rising to highs last seen in April, a pattern that will increase pressure on the Bank of England ahead of its expected rate decision.
  • The fall leaves Chancellor John Healey facing a tighter backdrop for his budget next week because weaker consumer spending, higher borrowing costs and public debt pressures limit options for fiscal support.