The British consumer confidence has dropped to the lowest level since the top value of the cost of living in December 2022, since the households feel the strain of Donald Trump’s new tariffs, the continuing war in Ukraine and a rock of domestic tax and price increases according to new data.
The recent trial of trust in the consumer group was seven points -53, which reflected the widespread concern about both the economy and personal finances. Almost two thirds of consumers (64%) believe that the British economy will deteriorate next year, while only 11% are optimistic, it will improve.
The data reflects other warnings of rising anxiety among the British households. According to the GfK, April brought a “perfect storm” of pressure, including higher supply calculations, taxes, the council, road tax and stamp tax, which were reinforced by global instability and new concerns regarding the impact of inflation due to Trump’s trade policy.
The survey carried out in the month until April 11 showed that 67% of people blamed their pessimism for global events such as the Russia-Ukraine war and Trumps mutual tariffs, while 63% rising prices and 60% of the government in the Great Britain indicated.
The financial prospects of the house also deteriorated strongly, with the future budget finances decreased by 10 points to -19 -the lowest level since July 2023. The current finance also fell by six points to +21.
In April, around 1.9 million households missed at least one essential payment, including rent or mortgage payments, supply calculations or repayments for credit. The rate of missed rental payments rose to 4.7%, which reflected the continued squeeze to the tenants.
An estimated 13 million households (46%) had to make at least one financial adjustment last month to cover basic costs such as energy, living space, food, school material or medication. These adjustments included reducing the most necessary, immersing immersion in savings, selling things or accepting debts. Although the number of 51% improves slightly in March, the number remains high.
Rocio Concha, director of politics and advocacy, urged the government to take measures to restore trust and to protect consumers from predatory practices.
“Consumer protection give people trust to spend,” she said. “Regardless of whether it is online fraudsters, taking rogue dealers or fighting misleading business practices, the government has to do more in order to focus on consumers at the center of their plans.”
Since Trump’s tariffs threaten to increase the prices for imported goods and further disturb the global supply chains, the analysts fear that the current trust slide could deteriorate. The International Monetary Fund has already reduced its British growth forecast for 2025, and the office for budget responsibility has warned of potential ten billion in the lost production when the global trade voltages escalate.
Since millions of British households exist in the narrower budget, the path to economic recovery can depend on the reconstruction of the trust of the consumer as well as the taming of inflation or increasing GDP. At the moment, the prospects of both international uncertainty and decisions in domestic policy remains cloudy.