UK consumer confidence falls sharply as cost of living pressures mount
A GfK survey shows British consumer sentiment dropped 11 percentage points in October, the steepest decline since the Covid pandemic.
At a glance
- GfK consumer confidence index fell 11 percentage points in October to -24
- Steepest decline since Covid pandemic outside that period
- Rising cost of living cited as key pressure on households
- Economic impact from Middle East conflict contributing to downturn
Consumer confidence in the UK fell by 11 percentage points in October to a reading of -24, according to data from GfK. The decline marks the fastest rate of decrease outside the Covid period since the 2016 Brexit vote, as households face mounting pressure from rising living costs.
The drop comes as economic fallout from the Middle East conflict adds to existing pressures on consumers. The timing is significant, occurring just days before Chancellor John Healey's first budget announcement.
Why it matters
Consumer confidence is a key economic indicator affecting spending patterns and growth. The sharp decline comes ahead of the government's budget, which may influence policy responses to economic pressures.
Original reporting
- The Guardian — WorldUK consumer confidence falls at fastest rate since Covid as cost of living bites
- The Guardian — BusinessUK consumer confidence falls at fastest rate since Covid as cost of living bites
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.