Brits no longer confident in future

Russia Today

25-04-2025

UK consumer confidence has dropped to its lowest point since 2023, driven by soaring bills, tax increases and fears that US tariffs could push living costs even higher for British households, a survey published on Friday has shown.
The consumer confidence index fell by four points to -23 in April, according to the latest update from data company GfK, marking the lowest level in 17 months and well below economists' expectations of a decline to -21.
The index, which averages responses to key sentiment questions, ranges from -100 to +100. Positive scores reflect consumer optimism, while negative readings indicate a prevailing sense of pessimism.
The index is closely monitored by the British government and the Bank of England for early warning signs on the economy since the early 1970s.
The drop represents a stark warning for the UK economy and reflects how British consumers were hit by a mix of domestic tax hikes, surging household bills, and growing concerns over tariffs imposed by US President Donald Trump.
The country faces a 10% tariff on most goods and 25% on steel, aluminum and automotive exports to the US. Washington and London are currently negotiating a new trade agreement, with Trump having paused the imposition of tariffs for 90 days.
While the UK has been spared the worst of the levies imposed by Trump earlier this month, households have become much more downbeat about the outlook for the British economy.
'Consumers have not only been grappling with multiple April cost increases in the form of utilities, council tax, stamp duty, and road tax, but they are also hearing dire warnings of renewed high inflation on the back of the Trump tariffs,' said Neil Bellamy, consumer insights director at GfK.
April's reading of -23 marks the lowest level since the Labour Party assumed office last summer, according to the survey.
The UK's energy regulator, Ofgem, announced a 6.4% increase in the energy price cap effective from April 1, raising the average annual energy bill for a typical household from £1,738 ($2,172) to £1,849 ($2,311).
The cost of living crisis fueled by high interest rates and rising energy prices has taken a toll on British households over the past two years, forcing millions of families to cut spending. Meanwhile, manufacturers have been slashing production in response to a downturn in orders from domestic and export markets, multiple previous surveys showed.