UK Consumer Confidence Posts Steepest Drop Since the Pandemic Began
GfK's consumer confidence index fell 11 points to minus 24 in October, well below the minus 14 economists had expected in a WSJ poll.
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what happened
According to Dow Jones Newswires, citing research group GfK, UK consumer confidence fell 11 points in October to minus 24. It is the sharpest decline since April 2020, when the pandemic began. Economists polled by The Wall Street Journal had expected a reading of minus 14.
The main drivers were worsening household expectations for the economy over the next year and a sharp drop in plans for big purchases. Higher energy prices linked to the war in Iran are squeezing household budgets. A day earlier, data showed inflation in August rose further above the Bank of England's target.
GfK's Neil Bellamy said the summer's upbeat mood had evaporated and the speed of the deterioration was alarming. The slump casts doubt on whether the economy, which grew 1.2% in the first half, can keep its resilience into the final quarter.
why it matters
Weaker sentiment raises the chance that the Bank of England raises rates at its November 5 meeting, though weak demand pulls the other way. Sterling and gilts are likely to stay sensitive to upcoming inflation and retail sales data.
market impact
Sterling and gilts: weak sentiment and high inflation add uncertainty around the Bank of England's decision
tags
instruments
sources
- U.K. Consumer Confidence Suffers Biggest Drop Since Pandemic — Dow Jones Newswires, 22 October 2026 at 23:01 UTC
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