UK Consumer Confidence Sees Biggest Drop Since Pandemic

2026-10-22 23:11 By Joshua Ferrer 1 min. read

The UK GfK Consumer Confidence Index plunged 11 points to -24 in October 2026 from -13 in September, marking its sharpest monthly decline since April 2020 and its lowest reading since April.

The result was significantly worse than market expectations of -15 as rising inflation, higher energy prices and the ongoing Middle East conflict weighed on household sentiment ahead of Finance Minister John Healey's budget next week.

Confidence in the economic outlook deteriorated sharply, while willingness to make major purchases fell to its lowest level in more than two years.

Inflation expectations also rose to their highest since April, increasing concerns that the Bank of England could raise interest rates in November.

The decline reverses a summer recovery, with other surveys also indicating weakening sentiment despite stronger economic growth in the first half of the year.

GfK said confidence fell across income, age and gender groups, reflecting household financial pressures.



News Stream
UK Consumer Confidence Sees Biggest Drop Since Pandemic
The UK GfK Consumer Confidence Index plunged 11 points to -24 in October 2026 from -13 in September, marking its sharpest monthly decline since April 2020 and its lowest reading since April. The result was significantly worse than market expectations of -15 as rising inflation, higher energy prices and the ongoing Middle East conflict weighed on household sentiment ahead of Finance Minister John Healey's budget next week. Confidence in the economic outlook deteriorated sharply, while willingness to make major purchases fell to its lowest level in more than two years. Inflation expectations also rose to their highest since April, increasing concerns that the Bank of England could raise interest rates in November. The decline reverses a summer recovery, with other surveys also indicating weakening sentiment despite stronger economic growth in the first half of the year. GfK said confidence fell across income, age and gender groups, reflecting household financial pressures.
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UK Consumer Confidence Hits More Than 2-Year High
The UK GfK Consumer Confidence Index rose to -13 in September 2026 from -14 in August, unexpectedly reaching its highest level since August 2024 as households became more optimistic about their personal finances. The reading was above market expectations of -16 and came shortly after the governing Labour Party came to power, adding to recent signs of resilience in the economy. Confidence in the economic outlook also climbed to its highest level since August 2024, while the mood around personal finances reached an eight-month high. Separate YouGov/Cebr and LSEG/Ipsos surveys published this month also recorded their highest readings since February. However, BRC/Opinium and S&P Global surveys showed consumer confidence falling, highlighting a mixed picture. GfK said confidence remains firmly in negative territory and warned that deteriorating inflation expectations could weigh on households as energy and fuel prices rise, potentially causing consumer sentiment to falter.
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