Consumer confidence plummets amid inflation rises

In April, consumer confidence crashed to -38, one point away from the lowest score recorded by GfK.

There were also significant reductions in confidence over personal finances, major purchases and the general economic situation, according to the index.

Confidence in people’s personal financial situation over the past year fell six points from March to -19, while confidence in personal finances for the year ahead was eight points down at -26.

The general economic situation over the past 12 months was rated -60, down nine points from March, while the outlook for the economy over the next year dropped six points to -55.

The major purchase index, which measures whether respondents feel the time is right to buy a major item such as a car, was at -32, which was eight points below March’s level.

The savings index remained positive with 10 points, but also saw an eight-point fall on the prior month.

This month’s survey was conducted among a representative sample of 2,000 individuals aged 16 or older, and interviewing was carried out between 1st March and 14th March.

Joe Staton, client strategy director at GfK, said: “When rising inflation and interest rates meet low growth and declining incomes, consumers will understandably be extremely cautious about any spending.

“There’s clear evidence that Brits are thinking twice about shopping, as seen in the tumbling major purchase index – now is not considered to be a good time to buy.

“This is dire news for consumer confidence and with little prospect of any economic relief on the horizon we can only forecast further falls in the index for the year ahead.”