Consumer confidence in the UK has dropped by four points to -23 as Trump-initiated tariff shockwaves hit the UK economy, on top of existing concerns around tax increases and rising household costs.
April’s update from data company GfK takes the index to its lowest level since November 2023, as shoppers remain unclear about what the US trade wars and increased tariffs will mean for the cost of their day-to-day living.
The drop is a stark warning for the UK economy, as all of the five measures which make up the overall score have fallen since last month.
GfK’s consumer insights director, Neil Bellamy, said there was “good reason for this downturn”.
”Consumers have not only been grappling with multiple April cost increases in the form of utilities, council tax, stamp duty and road tax, but they are also hearing dire warnings of renewed high inflation on the back of the Trump Tariffs.
”The inflation rate eased in March, but are we now on the verge of another round of rapidly increasing prices? If so, consumer confidence is likely to collapse and the broad gains seen since the disastrous September 2022 minibudget, when confidence hit a record low of -49, could quickly be eroded.”
The index also recorded an eight point fall in UK consumer expectations for the general economic situation over the next 12 months, from -29 to -37, some 16 points worse than in April 2024.
Personal finances are also expected to take a hit over the next 12 months, with confidence dropping by four points, to -3.
The barometer comes just a day after a raft of global consumer goods giants warned of price increases over the coming year.
Unilever, Nestle and Procter & Gamble all suggested more price increases would be likely as Trump’s controversial international trade policy continues to affect the cost of raw ingredients.
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