Consumer confidence in the UK fell by 11 percentage points in October to reach minus 24, according to GfK data released this week. The decline marks the fastest drop outside the Covid pandemic since the 2016 Brexit vote.
GfK, a data company, tracks consumer sentiment through its barometer. The October reading reflects mounting pressure on UK households from the rising cost of living. The source attributes additional economic fallout to the war in the Middle East.
The timing compounds pressure on Chancellor John Healey ahead of his first budget, scheduled within days of the survey's release. GfK's measure captures how British consumers feel about their own finances and the wider economy.
The extent of the decline underscores the fragility of consumer spending at a moment when the UK government prepares major fiscal decisions. Consumer confidence directly influences spending patterns. When confidence falls sharply, households typically reduce purchases and defer investment, which can slow economic growth.
The source does not provide details on which aspects of the survey drove the sharpest declines or offer projections for consumer behaviour in coming months.