Consumer confidence in Britain fell sharply in September, wiping out the progress made so far this year, as anticipation of a “painful” Budget sapped household morale and threatened the UK’s spending recovery.
The GfK consumer confidence index — a measure of how people view their personal finances and broader economic prospects — fell seven points to minus 20, taking it back to January’s level, according to new data from the research company.
The month-on-month fall was the largest since October last year, when offered mortgage rates were at a near-peak. And it comes despite cheaper home loans becoming available, rising real wages and the retreat of inflation, and will reinforce concerns that Sir Keir Starmer and his ministers have been too downbeat about the economy.