By Andy Bruce
(Reuters) -British consumer confidence slid this month to its lowest level since November 2023 as people became much gloomier about the outlook for the economy, with rising bills and the U.S. trade war weighing on sentiment, a survey showed on Friday.
The GfK Consumer Confidence Index fell to -23 in April from -19 in March. A Reuters poll of economists had pointed to a reading of -22.
Households became much more downbeat about the outlook for Britain’s economy, with the expectations index sinking to its lowest level since March 2023.
Overall the survey added to signs of wilting confidence among businesses and consumers who are contending with President Donald Trump’s trade war – which sparked turmoil in financial markets – as well as persistent inflationary pressure at home.
Neil Bellamy, consumer insights director at market research firm GfK, said consumer confidence could slide further if inflation picks up rapidly this year.
“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,” he said.
Regulated household energy prices increased by 6.4% this month.
The Bank of England has said it is too soon to say how the trade war will affect Britain’s inflation outlook, although some of its policymakers have said it may turn out to be disinflationary.
Another gauge of the consumer economy, retail sales data, is likely to show sales volumes dropped in March, according to economists polled by Reuters. The figures are due at 0600 GMT.
The GfK survey of 2,002 Britons aged 16 and over took place between April 1 and April 14.
(Reporting by Andy Bruce; editing by Suban Abdulla)
