According to Growth from Knowledge’s [GfK] latest Consumer Confidence Index, consumer confidence in the UK economy and in personal finances has sharply declined as the cost-of-living crisis continues to take effect.
The Consumer Confidence Index fell five points to -31 in March, as inflation hits a 30-year high of seven per cent and looks set to rise further before the end of the year.
It is the fourth consecutive month that the Consumer Confidence Index has fallen, and has stooped below levels seen in October and November 2020, when the country was afflicted with the second wave of Covid-19.
Meanwhile, confidence in personal finances over the next 12 months dropped off by a further four points to -18, having stood 28 points higher [10] this time in 2021.
GfK client strategy director, Joe Staton, commented: “A wall of worry is confronting consumers this month and there is an unmistakable sense of crisis in our numbers.
“Consumers across the UK are experiencing the impact of soaring living costs with 30-year-high levels of inflation, record-high fuel and food prices, a recent interest-rate hike and the prospect of more increases to come, and higher taxation too - all against a background of stagnant pay rises that cannot compensate for the financial duress.
“Confidence in our personal financial situation and in the wider economy are severely depressed while the daily news of unimaginable suffering from a horrifying war in Europe and rising Covid numbers at home is adding to the bleak mood.
“The outlook for consumer confidence is not good; it’s certain there's more bad news to come.”
Indeed, expectations for the general economic situation over the coming year also fell by six points to -49, now standing at 32 points worse off than figures seen in March 2021.
Photo by Emil Kalibradov on Unsplash
