Yahoo Finance UK consumer confidence continues to fall as cost-of-living crisis deepens
Consumer confidence continued to nosedive in March as UK households faced a sharp cost-of-living squeeze amid soaring inflation and rising energy, food and fuel prices.
According to GfK’s consumer confidence barometer, consumer confidence in Britain fell a further five points to -31 during the month, with all measures down compared to February.
It was the fourth month in a row that confidence had dropped, falling back to a level last seen in October and November 2020 when COVID numbers were rising.
The survey was conducted between 1 and 14 March 2022, amongst a sample of 2,000 individuals.
Confidence in consumers’ personal financial situation decreased by two points to -13 during the month, 11 points worse than March 2021, as inflation continued to rise and prices soared.
The forecast for personal finances over the next 12 months also decreased four points to -18; this was 28 points lower than this time last year.
Meanwhile, optimism surrounding the wider economy also remained “severely depressed” as the Ukraine war and the rise of COVID numbers added to the bleak mood.
The measure for the general economic situation of the country during the last 12 months was one point lower at -51, the data showed.
“A wall of worry is confronting consumers this month and there is an unmistakable sense of crisis in our numbers,” Joe Staton, client strategy director of GfK, said.
“Consumers across the UK are experiencing the impact of soaring living costs with 30-year-high levels of inflation, record-high fuel and food prices, a recent interest-rate hike and the prospect of more increases to come, and higher taxation too – all against a background of stagnant pay rises that cannot compensate for the financial duress.”
Read more: Spring Statement: Rishi Sunak cuts income tax and fuel duty
It came as UK inflation hit 6.2% in the year to February, its highest level since March 1992. This was above January’s previous 30-year high of 5.5%. On a monthly basis, CPI inflation was 0.8%, exceeding expectations for a 0.6% rise, and the biggest increase since 2009.
The biggest contribution came from soaring energy, fuel and food prices, while transport saw the highest rate for the second consecutive month.
The ONS data also revealed a rise in prices for second hand cars, while food and non-alcoholic beverages prices rose by 5.1% during the period.
On Wednesday, chancellor Rishi Sunak announced a fresh package of measures in his Spring Statement to combat the cost-of-living crisis, but there have been warnings that many still face poverty.
Watch: How to prevent getting into debt
