British households’ confidence in their financial outlook has fallen to its lowest in eight years, as the cost of living crisis hits.
Polling company YouGov and economic consultancy Cebr have reported that consumer confidence dropped this month to the lowest since last March, as people worry about rising prices, tax increases and their job security.
The index of households’ expectations for their financial situation in 12 months’ time tumbled by 4.5 points to 79.1, the lowest since October 2013.
The drop in consumer confidence highlights the impact of the rising cost of living on household sentiment, says Sam Miley, senior economist at Cebr:
“Away from the headline indicator, consumers’ assessment of their finances over the coming year provides for a particularly stark reading – reaching a near nine-year low. Rising inflation and the planned uplift to National Insurance contributions are just two likely factors behind this weaker outlook.
This sentiment is also mirrored in Cebr’s latest forecasts, with real disposable incomes expected to fall year-on-year and the household savings ratio set to narrow significantly.”