Confidence among British consumers fell to its lowest level in five decades in May as inflation continued to weigh household sentiment and squeeze real incomes.
The GfK Consumer Confidence Barometer fell to -40 in May from -38 in April, the lowest level since 1974, when the survey was launched.
The index, which tracks consumers’ perceptions of the economy in general and their personal finances, has fallen over the past six months.
Economists expected the index to remain unchanged from the previous month.
“Consumer confidence is now weaker than it was in the dark days of the global banking crisis, the impact of Brexit on the economy or the restrictions due to the coronavirus,” said GfK’s customer strategy director Joe Staton.
British consumers’ perceptions of the economy and their finances have plummeted over the past six months, largely due to the spread of Omicron and rising inflation.
Inflation in the UK hit a 40-year high of 9% in April as rising energy prices fueled household utility bills.
Source: Capital
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