UK consumer confidence falls sharply ahead of budget

Highlights

• Consumer confidence fell to -19 in November from -17 in October.
• Major purchases dropped three points to -15, tightening consumer spending.
• Expectations for personal finances and the economy over the next year both fell sharply.

The GfK Consumer Confidence Barometer, Britain's longest-running measure of household sentiment, dropped to -19 from -17 in October. This marks the joint-lowest reading since May, though it remains above April's -23 following last year's household bill increases and US tariff announcements.

All five measures tracked by GfK declined compared to October. Neil Bellamy, Consumer Insights director at GfK, described the results as "a bleak set of results as we head towards next week's Budget," noting that "the public is bracing for difficult news."

Household spending concerns

The three-point fall in the Major Purchase Index to -15 is particularly concerning as Britain enters its busiest retail season. The British Retail Consortium reported that consumer expectations for spending on goods and wider purchases both fell sharply in early November.

A separate survey by Opinium for the BRC found that net consumer expectations for the UK economy over the next three months fell to -44 per cent from -35 per cent in October, the lowest since April and the biggest month-on-month drop since that time.

Expectations for personal finances over three months also fell to -16 per cent from -11 per cent. BRC chief executive Helen Dickinson noted that "With Christmas fast approaching, public expectations of spending fell."

The Savings Index fell five points to 24, matching levels from a year ago. Looking forward, expectations for both personal financial situations and the general economic situation over the next 12 months have both declined significantly, suggesting households remain uncertain about what the budget will bring.