Consumer confidence slides amid household bill hikes and ‘Trump Tariffs’

Consumer confidence has seen a sharp drop as households grapple with across-the-board bill hikes and face new warnings of rising inflation.

GfK’s long-running Consumer Confidence Index fell four points in April to minus 23, led by an eight-point fall in expectations for the wider economy over the coming year.

The measure of confidence in the general economic situation over the next 12 months is now at minus 37 – 16 points worse than last April.

Confidence in personal finances over the next year also fell by a significant four points to minus three – five points worse than this time last year.

The major purchase index, an indicator of confidence in buying big-ticket items, fell two points to minus 19, although this is six points higher than a year ago.

Neil Bellamy, consumer insights director at GfK, said: “Headline confidence is down four points in April, led by two sharp drops in our economic measures.

“There are good reasons 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 mini budget, when confidence hit a record low of minus 49, could quickly be eroded.”