Sky high inflation: Consumer confidence crashes as Brits worry about big purchases
Consumer confidence has crashed this month, nearing a historic low in GrowthforKnowledge (GfK)’s index.
The data company’s Consumer Confidence Index decreased seven points to -38 in April, as Brits worried about rising inflation.
All measures, which look at how Brits feel about their personal situation and general economic situation, as well as major purchases, were down on March’s figures.
Scores for the next 12 months for personal finances and the general economy are worse than the 2008 financialc rash, at -26 and at -55 respectively.
The Major Purchase Index has dropped by eight points to -32 in March, 20 points lower than this month last year, as Brits hold back on big buys.
GfK’s client strategy director, Joe Staton: “The cost crunch is really hitting the pockets of UK consumers and the headline confidence score has dropped to a near historic low. When rising inflation and interest rates meet low growth and declining incomes, consumers will understandably be extremely cautious about any spending.
“There’s clear evidence that Brits are thinking twice about shopping, as seen in the tumbling Major Purchase Index – now is not considered to be a good time to buy. This is dire news for consumer confidence and with little prospect of any economic relief on the horizon we can only forecast further falls in the Index for the year ahead.”
The latest figures also show retail sales continue to fall, with the Office for National Statistics (ONS) recording that sales dropped 1.4 per cent in March.