UK consumer morale slid this month to its lowest since October 2023 as households ramped up their expectations for price rises, according to a survey on Thursday that added to signs of economic fallout from the Iran war.
GfK’s consumer confidence index, the longest-running survey of its kind in UK, fell to -25 in April from -21 in March, as expected in a Reuters poll of economists.
It marked the lowest reading since UK fell into a short recession during the second half of 2023, following a bout of double-digit inflation.
GfK’s survey was originally due to be released on Friday, but the market research company allowed publication ahead of schedule because of a broken embargo.
All of the survey’s key components – including gauges of personal financial and economic confidence – fell in April, with the exception of its major purchases index which was flat.
“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,” said Neil Bellamy, consumer insights director at GfK.
An Ipsos survey of the public published on Wednesday showed economic optimism at its lowest ebb since records began in 1978.
GfK said 85% of British consumers expected to see prices rise in the next 12 months, up from 79% in March and the highest share since November 2022, when inflation was in double digits.
Two long-running business surveys published earlier on Thursday showed inflation indicators for companies flashing red, marked by record increases in price gauges.
GfK’s savings index rose to its highest level since July 2025. Bellamy said that was “often an indication that people are concerned about what lies ahead, so those who can are building contingency funds.”