The GfK Consumer Confidence indicator in the United Kingdom fell slightly to -21 in October 2024 from -20 in September, hitting the lowest level in this year as potential tax increases in next week’s Budget weighed on households and businesses.
UK consumer confidence slips ahead of budget
The latest figure also matched forecasts and hit the same level as February and March. Three of the five components of the survey declined. Neil Bellamy, consumer insights director, said: "As the budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation.” Prime Minister Keir Starmer and Chancellor Rachel Reeves have previously warned about tax hikes in the upcoming budget to close the government’s funding gap.
Sharp slowdown in inflation
Meanwhile, latest figures indicated that a sharp slowdown in inflation and wage growth, prompting traders to bet on rate cuts from the Bank of England in November and December.
