UK consumer confidence hits new low

Consumer confidence in the UK has plummeted to its lowest level since the onset of the cost-of-living crisis, according to a new report released today. The sharp decline reflects growing public anxiety over economic stagnation, high inflation, and the potential fallout from escalating global trade tensions.​

In response to these developments, the Bank of England is widely expected to announce a quarter-point interest rate cut later this week

The latest figures reveal a significant drop in consumer sentiment, with many households expressing concerns about their financial stability and the broader economic outlook. Analysts attribute this downturn to a combination of persistent inflationary pressures and uncertainty surrounding international trade policies.​

In response to these developments, the Bank of England is widely expected to announce a quarter-point interest rate cut later this week, bringing the base rate down to 4.25%. This anticipated move aims to stimulate economic activity and alleviate some of the financial burdens facing consumers. However, some economists argue that more aggressive measures may be necessary to counteract the prevailing economic headwinds.​

The decline in consumer confidence also coincides with a notable shift in the UK's economic landscape. Recent reports suggest that economic growth could be "postponed" for up to two years, as the country grapples with a complex mix of domestic challenges and external pressures. This projection underscores the urgency for policymakers to implement strategies that bolster consumer sentiment and drive sustainable growth.​