Key facts
- GfK consumer confidence index fell 11 points to -24 in October.
- The drop is the sharpest month-on-month fall since April 2020.
- Consumers' inflation expectations reached their highest level since April.
- The major purchase index fell 14 points to -22 in October.
British consumer confidence has seen its steepest monthly decline since the early days of the COVID-19 pandemic, with the GfK index falling 11 points to -24 in October. This marks the lowest point since April and surpasses all economist forecasts. The significant drop, the largest since April 2020, is attributed to rising inflation, the conflict in the Middle East, and broader household budget pressures. Consumers' inflation expectations have also climbed to their highest level since April, a concern for the Bank of England which is anticipated to increase interest rates next month. The survey of 2,003 adults was conducted between October 1-14. Official figures released on Wednesday show headline inflation rose by more than expected to 3.5% last month, while the government deficit was a worse-than-forecast £24.5bn. Separate figures from the CBI show investment intentions among manufacturing businesses were subdued as cost pressures remained high in the three months to October.