Consumer confidence in the future of the UK economy has plummeted to its lowest level since the height of the cost-of-living crisis, according to a survey.
Almost two-thirds of consumers (64%) believe the economy will get worse before it gets better, according to the Which? Consumer Insight Tracker.
Confidence fell by seven points to minus 53 in April – its lowest level since December 2022, when the cost-of-living crisis was at its height and the inflation rate was above 10%.
When Which? asked respondents who reported being pessimistic why they felt so negatively about the future UK economy, 67% said it was because of global events, while 63% cited changes in prices and 60% mentioned government tax changes.
Confidence in future household finances also fell significantly, by 10 points to minus 19 – the lowest level reported since July 2023 – while confidence in current household finances dropped six points to minus 21.
This comes as the estimated number of households missing essential payments such as rent or mortgage, utility bills, credit card or loans remained at similar levels to March, at 1.9 million households.
The proportion of renters missing rent payments increased to 4.7% in the last month, suggesting many are still struggling to make ends meet due to ongoing cost-of-living pressures.
An estimated 13 million households (46%) made at least one adjustment to cover essential spending such as utility bills, housing costs, groceries, school supplies and medicines in the last month, although this was slightly lower than the 51% seen in March.
Adjustments included cutting back on essentials, dipping into savings, selling possessions or borrowing.
Rocio Concha, Director of Policy and Advocacy at Which? , said: “Our research shows consumer confidence in the future of the UK economy has fallen to the lowest levels seen since the height of the cost-of-living crisis.
“Consumer protections give people the confidence to spend, so whether it’s rooting out online fraudsters, taking down rogue traders or tackling misleading business practices, the Government must do more to place consumers at the heart of its plans to grow the economy and restore people’s confidence.”
