Consumer confidence plummeted to its lowest level on record last month amid warnings of a sharp drop in economic growth and rising unemployment.
Households are losing faith in the economy’s ability to withstand the coronavirus pandemic and the vast majority expect the country to fall into recession this year, according to a poll by YouGov and the Centre for Economic and Business Research. More than a quarter (28 per cent) expected a more prolonged depression.
The YouGov/CEBR index, which is based on a survey of 6,000 households in Britain, fell to 92.7 in April, down from 98.6 in March. It was the lowest reading since the survey began in January 2012. Any score below 100 means that more consumers lack confidence than are confident.
“This is the third consecutive monthly drop — a negative run that has wiped 14.9 points off the index,” the report said.
The fall amid warnings that Britain is on the cusp of one of its worst economic downturns in modern history. According to the Office for Budget Responsibility, the UK Economy will shrink by as much as 35 per cent in the second quarter of the year and unemployment will rise by 2 million to reach 10 per cent.