Consumer confidence in the UK weakened in January, a survey showed on Friday, as concerns about the rising cost of living mounted.
GfK’s Consumer Confidence Index fell four points in January, to -19, its lowest level since February 2021. GfK attributed the fall to expected rises in inflation, fuel and interest rates.
Economists at Barclays Research had expected the index to remain unchanged at -15.0.
Among the individual measures that make up the overall index, expectations for the personal financial situation for the coming 12 months fell 3 points, to -2, while expectations for the general economic situation tumbled 8 points to -32.
The major purchase index lost 4 points to -10.
The retrospective indices, for the personal financial situation and general economic situation over the last 12 months, also fell, off 1 point at -6 and down 8 points at -47, respectively.
Joe Staton, client strategy director, said: “Despite some good news about the easing of Covid restrictions, consumers are clearly bracing themselves for surging inflation, rising fuel bills and the prospect of interest rate rises. The four-point fall in the major purchase index certainly suggests people are ready to tighten their belts.”
Staton added that the cost of living-squeeze would likely affect people “for months to come”.
A total of 2,000 individuals aged 16 and over were surveyed for GfK’s UK Consumer Confidence Barometer. Interviews were carried out between 4 and 12 January.
