Concerns about global events such as the US tariffs and war in Ukraine have impacted how people feel about the UK economy.
According to the tracker, consumer confidence in the future UK economy has fallen by seven points to minus 53. This is because 64% of consumers believe the UK economy will get worse in the next 12 months, while only 11% believe it will get better.
The figures mark the lowest level of confidence since December 2022, when the cost-of-living crisis was at its height and the inflation rate was above 10%.
When the consumer champion asked respondents who reported being pessimistic why they felt so negatively about the future UK economy, nearly seven in 10 (67%) said it was because of global events such as the war in Ukraine and the US tariffs and trade policy. Other commonly cited reasons include changes in prices (63%) and Government tax changes (60%).
Household finances
Confidence in future household finances also fell significantly – by 10 points to negative 19, the lowest level reported since July 2023. Confidence in current household finances decreased by six points to 21.
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The latest consumer confidence survey results from Which? come as the estimated number of households missing essential payments – such as rent or mortgage payments, utility bills, credit card or loan payments – remained at similar levels to March, at 1.9 million households in the month to 11 April.
Figures from StepChange Debt Charity point to an increasing number of people in debt as they can’t afford their household bills.
According to Which?, the proportion of renters missing rent payments has increased to 4.7% in the past month, suggesting many are still struggling to make ends meet due to ongoing cost-of-living pressures.
The consumer champion also found that an estimated 13 million households (46%) made at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the past month.
Adjustments include cutting back on essentials, dipping into savings, selling possessions or borrowing. This is slightly lower than the 51% seen in March.
Rocio Concha, Which?’s director of policy and advocacy, said: “Our research shows consumer confidence in the future of the UK economy has fallen to the lowest levels seen since the height of the cost-of-living crisis.
“Consumer protections give people the confidence to spend, so whether it’s rooting out online fraudsters, taking down rogue traders or tackling misleading business practices, the Government must do more to place consumers at the heart of its plans to grow the economy and restore people’s confidence.”
