GfK’s Consumer Confidence Index fell four points to -25 in April, the third monthly fall in a row. Four measures were down and one was flat, compared to last month’s announcement. The Major Purchase Index stayed the same at -18, one point higher than April last year.
Neil Bellamy, consumer insights director at GfK, an NIQ Company, says: “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. The biggest declines are in perceptions of the UK economy, with an eight-point slide in views on the economic picture over the last 12 months, and a six-point fall in the forward-looking measure to -43, its lowest level since February 2023.
"Consumers were arguably resilient about their personal finances in March, but this month’s finance measures, looking back a year (-11) and looking forward (-4), have seen significant slides. 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?”
