LONDON, Oct 25 (Reuters) – British consumer confidence fell to the lowest level since March as concerns about possible tax hikes dented sentiment in the lead-up to the new government’s first budget next week, a long-running survey showed on Friday.
Market research firm GfK’s consumer confidence survey edged down to -21 in October from -20 in September – the lowest since March when the previous Conservative government delivered its last budget.
Friday’s figure was in line with the median forecast in a Reuters poll of economists.
“As the budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation,” Neil Bellamy, consumer insights director, said.
British households are still struggling with higher living costs that were accelerated by a surge in energy prices following Russia’s invasion of Ukraine in February 2022.
“This month’s Consumer Confidence Barometer paints a picture of people holding their breath to see what’s in store for them on Oct. 30,” Bellamy said.
Three of the five components of the GfK’s survey – the longest-running measure of British consumer sentiment – fell this month.
GfK’s measure of how consumers view the economy over the next 12 months declined to -28 from -27 in September while households’ feelings about their personal finances increased by one point to -2.
There was also a four-point increase in a sub-index of shoppers’ willingness to make expensive purchases.
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Reporting by Suban Abdulla
Editing by William Schomberg
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