Economics
U.K. Confidence Falls as Consumers Brace for Income Squeeze
- Rising inflation and tax increases fan cost-of-living crisis
- Lower confidence likely to hit retail sales ahead of Christmas
This article is for subscribers only.
U.K. consumer confidence fell at its sharpest pace since coronavirus lockdown rules were tightened almost a year ago, reflecting a surge in inflation and looming tax increases.
September’s 5-point drop to minus 13 was the biggest decline since October 2020, according to data from the market research firm GfK. It came amid fears of a “potential cost of living crisis,” with households facing surging food and fuel costs, the end of furlough benefits and a 12 billion-pound ($16.5 billion) tax raid from April to pay for health and social care.