Consumer Confidence index drops to -40. Joe Staton, client strategy director at GfK, said: “This means consumer confidence is now weaker than in the darkest days of the global banking crisis, the impact of Brexit on the economy, or the Covid shutdown.”
But will it continue?
Whilst high inflation is unsettling, the majority of the UK population are unlikely to find themselves in a poverty situation, unable to pay their bills and facing increasing debt. Those so unfortunate to be in this situation will lack all confidence as forecasts remain negative for the next year.
The majority of households would have seen their fuel bills increase, and the inflationary impact on other products they buy, plus the upward slide in interest rates. Rather than the initial fear of a potential world war and the unknown risk to personal finances many may consider the current situation less daunting than a month ago – this may reflect in a more positive outlook.
Business Confidence is rising:
ONS Business Insights and Conditions Survey reported on the government website shows that 87% of businesses responding had high or moderate confidence levels.
"In the two weeks ending 3 April 2022, 87.0% of respondents had high or moderate confidence their business would survive the next three months. In the two weeks ending 29 May 2022, 20.4% of respondents thought their business’s performance would increase over the next 12 months. 11.7% thought it would decrease."
Perhaps there is some light at the end of the tunnel?