British consumer confidence has reached the lowest level since 2023 on the fear of tariffs, GFK said

Consumer confidence in the UK has fallen to the lowest level in more than a year, because the household faces an increase in costs and renews concerns over the economic impact of US presidential trade steps Donald Trump.

The GFK consumer confidence index fell four points to -23 in April, marked the weakest reading since November 2023. The decline reflects the pressure of the increase in domestic taxes, higher household bills, and fears that Trump tariffs can trigger other inflation waves.

Neil Bellamy, Director of Consumer Insights in GFK, said that consumers do not only deal with “some April cost increases” in the form of utility, council taxes, stamp duty and road taxes, but also “hearing terrible warnings about high high inflation behind Trump tariffs”.

Trump’s latest tariff round has disrupted the global market and increases the risk of a wider economic slowdown. While the impact of direct inflation outside the US remains uncertain, disturbances to supply chains can encourage prices in the UK as well.

According to GFK data, the measurement of expectations for the general economic situation in the next 12 months dropped eight points to -37, significantly worse than the reading from April 2024. Personal financial prospects also weakened, down four points to -3, which were five points lower -year -year -year.

The level of sentiment that falls often gives a signal to be up ahead, with households have the potential to reduce large purchases when financial uncertainty grows.

British inflation has dropped from the end of the end of 2022 by 11.1% and is now established at 2.6%. However, the Bank of England estimates that the temporary increase to 3.7% this summer before decreasing to the target of 2% over the next two years.

Bellamy raised the possibility that Britain could “on the threshold of other rounds with rapid price increases” bound to the impact of Trump’s trade policy. “If so, consumer confidence is likely to collapse, and the extensive benefits that are seen since the mini -September 2022 budget that is dangerous -when trust reaches a low record of -49 -can be quickly eroded.”
Source: Investting.com