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UK consumer confidence has plummeted to a record low of -49% in September, the lowest since 1974, according to the latest research from GfK.
It comes amid the cost of living crisis as households struggle with soaring energy bills and inflation.
Four measures were down in comparison to the 19 August announcement, and one was flat, with the greatest concerns held over the general economic situation over the last 12 months.
The fall defies expectations of a small rise to minus 42 forecast by economists polled by Reuters, who thought there would be some improvement following the government’s £150bn package aimed at freezing household energy bills.
Joe Staton, client strategy director, GfK said: “UK Consumer Confidence tumbled in September to a new low of -49, the worst Overall Index Score since records began in 1974. There have been new lows in four out of the last five months and all measures are once again severely depressed. Especially worrying are the two key future-facing indicators on personal finances in the coming year (down nine points to -40) and the economy in the next 12 months (down eight to -68).
“These numbers are where many forecasters look for signs of economic optimism among consumers and the results deliver very bad news in that respect. Consumers are buckling under the pressure of the UK’s growing cost-of-living crisis driven by rapidly rising food prices, domestic fuel bills and mortgage payments. They are asking themselves when and how the situation will improve.”
He added: “Today’s mini-budget, and the longer-term agenda to drive the economy and help rebalance household finances, will be the first major opportunity to deliver that improvement. It will also be a major test for the popularity of Liz Truss’s new Government.”
