UK Consumer Confidence Drops 12 Points to -13 as Iran Conflict Fuels Cost Fears
Updated
Updated · The Independent · May 11
UK Consumer Confidence Drops 12 Points to -13 as Iran Conflict Fuels Cost Fears
2 articles · Updated · The Independent · May 11
PwC’s April survey of more than 2,000 Britons showed consumer optimism falling from -1 to -13, the steepest quarterly drop since June 2022 and the weakest reading since the September 2023 recession.
Iran conflict fears drove the slide by intensifying worries over a fresh cost-of-living squeeze, with 9 in 10 consumers citing living costs as their biggest concern and nearly three-quarters expecting an impact on spending or saving.
Young adults stayed more optimistic than older groups but recorded the sharpest deterioration in views of household finances, alongside rising anxiety over job security and housing costs; older households were cushioned by the triple lock pension and April benefit rises.
Food and energy pressures are expected to worsen later this year: PwC said shoppers are already pulling back, and a think tank warned food prices could be 50% higher by November than at the start of the 2021 cost-of-living crisis.
The confidence slump adds to broader economic strain, with the Item Club warning Britain could lose 163,000 jobs this year as lower-income regions absorb more of the Iran war’s fallout.
With 80% of consumers cutting spending, which British industries will survive the coming economic storm?
Why is Britain's economy the most vulnerable among rich nations to the Middle East energy shock?
Can this energy crisis finally force the UK to achieve genuine energy independence?
UK Consumer Confidence Plummets 49 Points as Iran War Triggers Cost-of-Living Crisis and Stagflation Fears
Overview
The report shows how the escalating Middle East conflict has triggered widespread fears of a renewed cost-of-living crisis in the UK, leading to a sharp plunge in consumer confidence. The Bank of England’s recent warning that higher inflation is now unavoidable has fueled anxieties among households, who are bracing for another period of financial strain. Rising costs for essentials like fuel, food, and energy threaten household budgets, causing people to cut back on spending. This chain of events highlights how global conflicts can quickly impact everyday life in the UK, driving uncertainty and cautious behavior among consumers.