Confidence in UK consumers has dropped to its lowest level since 2022 under global and domestic pressure
Confidence among UK consumers has dropped to a minimum since the cost of living crisis peaked in December 2022 as families feel the pressure of Donald Trump’s new tariffs, pressure from the ongoing war in Ukraine and rising domestic taxes and prices, according to which new data?
The latest confidence tracker for the consumer group fell by 7 points to -53, reflecting widespread attention to the economy and personal finance. Nearly two-thirds of consumers (64%) believe that the UK economy will worsen next year, while only 11% will improve on optimism.
The data reflect other warnings about increased anxiety among households in the UK. According to GFK, April brought a “perfect storm” that included higher utility bills, municipal taxes, road taxes and stamp duty, a fresh question of global instability and inflation rebound due to Trump's trade policy.
The survey, conducted in the month ended April 11, found that 67% blamed their pessimism on global events such as the Russian-Ukrainian war and Trump’s reciprocal tariffs, while 63% raised prices and 60% pointed to changes in the UK government’s tax revenue.
The financial outlook for households has also deteriorated sharply, with confidence in future household finances falling by 10 points to -19, the lowest level since July 2023. Confidence in current finances also fell by 6 points to +21.
About 1.9 million households missed at least one basic payment in April, including rent or mortgage loans, utility bills or loan repayments. Missed rental payments rose to 4.7%, reflecting ongoing tensions with tenants.
An estimated 13 million households (46%) have been forced to make at least one economic adjustment in the past month to cover basic expenses such as energy, housing, groceries, school supplies or medicines. These adjustments include reducing essentials, selling savings, selling property or taking on debt. Despite a slight improvement in March of 51%, the figures remain high.
Rocio Concha, Director of Policy and Advocacy, urged the government to take action to restore confidence and to protect consumers from predatory practices.
“Consumer protection gives people confidence to spend,” she said. “Whether it’s about taking root online fraudsters, eliminating rogue traders or addressing misleading business practices, the government must do more to put consumers at the heart of their economic development plans.”
As Trump’s tariffs threaten to push up prices of imported goods and further undermine global supply chains, analysts fear the current slide of confidence may worsen. The IMF has cut its 2025 growth forecast, and the Budget Responsibility Office warns that hundreds of billions of dollars of output could be lost if global trade tensions escalate.
With millions of UK households tight budgets, the path to economic recovery may depend on rebuilding consumer trust, just like taming inflation or increasing GDP. At present, the prospects are still shrouded in international uncertainty and domestic policy decisions.
