British consumer confidence has fallen to its lowest level since comparable records began nearly 50 years ago, with rising costs of living fueling worries about personal finances and the economic outlook.
In the monthly survey released by data provider GfK on Friday, August’s index score for overall consumer confidence fell to minus 44 from a reading of minus 41 recorded the previous month.
This is the lowest figure since equivalent data was first produced in 1974.
The volume of goods sold increased by 0.3% during the month, contrary to expectations which called for a continuation of the decline recorded in May and June, but, over the most recent three-month period, sales fell by 1.2% compared to the previous quarter.
Online sales rose 4.8% in July, which the Office for National Statistics (ONS) attributed to promotions run by Amazon’s Prime Day in the middle of last month.
Excluding this element of the numbers, retail sales volume fell 3.4% in July on a year-on-year basis, while sales value increased 7.8% over the same period, which highlights the price increase. The decline in consumer confidence reflects the slump in the UK economy, with double-digit inflation, the biggest fall in real wages for more than 20 years, a resurgence of strikes and mounting pressure on public services. GfK’s survey was carried out between August 1 and 12, when the Bank of England predicted the economy would soon slide into a recession lasting more than a year, as households struggled to pay their energy bills, which are likely to increase by more than 75% in October.