Consumer confidence slides as price increases give households “the jitters”
Consumer confidence has fallen for the third month in a row as people become more anxious about fuel price increases and the prospect of higher energy bills as a result of conflict in the Middle East.
GfK’s long-running Consumer Confidence Index has dropped four points to -25 in April, with four measures down and one flat compared to the previous month.
Subscribe to TRBNeil Bellamy, consumer insights director at GfK, said: “Consumers really do have the jitters now. The anxiety we saw last month has deepened with a four-point fall in April’s consumer confidence headline score to -25.
“It is a year since we last saw a monthly drop of this size, and we have to go back to October 2023 to find the last time consumer confidence was lower.”
GfK’s index for expectations for the general economic situation over the coming 12 months has fallen six points to -43. The forecast for personal finances over the next year is also down, with a five-point fall to -4.
While the major purchase index has stayed the same this month at -18, which is one point better than April last year, GfK’s savings index has increased by five points to 32.
Bellamy said: “Everyone is grappling with rapid price rises, especially at the fuel pumps, which are taking a dent out of household budgets, and people know further price hikes are coming.
“The only measure to go up is our savings index, often an indication that people are concerned about what lies ahead, so those who can are building contingency funds.
“Consumer confidence is deteriorating sharply, with fuel prices and threats of more energy price increases acting as constant reminders of inflation.
“While the Gulf crisis is intensifying pressures, much of the current strain reflects earlier domestic cost increases. How long can all this disruption and pain continue?”
