Consumer confidence in the future of the UK economy has plummeted
to the lowest levels seen since the height of the cost of living
crisis due to concerns about global events such as the impact of
the US tariffs and war in Ukraine, according to the Which?
Consumer Insight Tracker.
According to the tracker, consumer confidence in the future UK
economy fell by seven points to -53. This is because 64 per cent
of consumers believe the UK economy will get worse in the next 12
months while only 11 per cent believe it will get better.
This marks the lowest level since December 2022 when the cost of
living crisis was at its height and the inflation rate was above
10 per cent.
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%).
Confidence in future household finances also fell significantly -
by ten points to -19 - to the lowest level reported since
July 2023 and confidence in current household finances decreased
by six points to +21.
This comes 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.
The proportion of renters missing rent payments increased to 4.7
per cent in the last month, suggesting many are still struggling
to make ends meet due to ongoing cost of living pressures.
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
last month. Adjustments include cutting back on essentials,
dipping into savings, selling possessions or borrowing. This is
slightly lower than the 51 per cent seen in March.
As it pushes to grow the economy and restore people's confidence,
the government must make sure it is acting in the best interests
of consumers. Well-designed laws and regulations that empower
people to switch from bad to good services and give them
confidence to try new products without fear of being ripped off
are essential to boosting consumer spending and creating dynamic
markets.
Rocio Concha, Which? 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.”
-ENDS-
Notes to editors
Which? - Consumer policy for
economic growth
Which? advice if you're struggling to pay your bills
If households are struggling to afford their mortgage, they
should speak to their lender as soon as possible. Lenders should
be understanding if income levels have changed – for example,
because someone has lost their job – and may offer a payment
holiday, extending the term to lower the monthly payment or a
temporary switch to interest-only repayments. Renters should
speak to their landlords about their situation and ask if they
are able to offer temporary help. More information here and here.
Consumer Insight Tracker
The Consumer Insight Tracker is an online poll conducted monthly
by Yonder on behalf of Which?. It is weighted to be nationally
representative with approximately 2,000 respondents per wave.
Which? estimates that between 5.6% and 7.7% of households missed
or defaulted on a housing, bill or credit payment in the last
month to April 11th, with an average estimate of 6.7%. Based on
the survey and the ONS estimate for the number of households in
2023 of 28.4 million, this scales up to between 1.6 million and
2.2 million households missing a bill payment in the last
month, with an average estimate of 1.9 million.
This survey indicates that between 44% and 48% of households made
at least one adjustment to cover essential spending in the last
month to April 11th, with an average estimate of 11%. Based on
the survey and the ONS estimate for the number of households in
2023 of 28.4 million, Which? estimates that between 12.4
million and 13.6 million households made an adjustment to
cover essential spending in the last month, with an average
estimate of 13 million.
Consumer confidence in future UK economy falls to -53
Source: Which? Consumer Insight Tracker, Online Poll weighted to
be nationally representative, approx 2,000 respondents per wave.
Two thirds (67%) of consumers who are pessimistic about the
future UK economy, cite global events as a reason.
Source: Which? Consumer Insight Tracker. Bases: Consumers
who think the UK economy will get worse (1,097) Consumers who
think the UK economy will get worse (1342)
Missed payment rate by household
Source: Which? Consumer Insight Tracker, Online Poll weighted to
be nationally representative, approx 2,000 respondents per wave.
Financial adjustment rate by household
Source: Which? Consumer Insight Tracker, Online Poll weighted to
be nationally representative, approx 2,000 respondents per wave.
