Consumer confidence fell four points in April as cost increases across household bills, taxes, and retail goods along with Trump’s tariffs are causing concern.
The overall index score dropped four points to -23 month-on-month. All measures were down compared to March, according to the GfK consumer confidence survey.
Confidence in personal finances over the last year fell one point to -10, only one point better than in April 2024.
The outlook for personal finances in the coming 12 months has decreased four points to -3.
The general economic situation over the last 12 months declined five points to -47, six points below year-on-year. This measure is expected to fall eight points to -37 in the next year.
The major purchase index was also down, reaching -19 points in April, but six points better than the same period last year.
GfK consumer insights director Neil Bellamy 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 mini Budget, when confidence hit a record low of -49, could quickly be eroded.”
No comments yet