GfK’s UK consumer confidence index has plunged to its worst level since 2008, as cost of living rises.
The research company GfK said the level has dropped to -38 in April, its lowest since 2008, when it was -39.
Driven by concerns over the rising cost of living, including fuel costs, energy bills and the knock-on effects of the situation in Ukraine, the drop has fuelled concerns of a renewed economic downturn over the second quarter.
Inflation was at 7% in March – the highest level since 1992, while take-home pay is set to fall by 2.2% this year – the most since records began in the 1950s, according to the latest projections by the Office for Budget Responsibility.
Joe Staton, client strategy director at GfK, commented: “When rising inflation and interest rates meet low growth and declining incomes, consumers will understandably be extremely cautious about spending.
“With little prospect of any economic relief of the horizon, we can only forecast further falls in the index.”
