Consumer confidence has dropped to its lowest point since January 2021, one of the worst months of the pandemic.
Confidence in February 2022 declined by seven points to -26, according to the latest data from the GfK consumer confidence index.
All measures dropped in February as consumers expressed concerns about rising prices across food, fuel and utilities.
Expectations for the coming 12 months were the biggest area of concern. Consumers’ confidence in their personal finances dropped by 12 points to -14, while feelings towards the general economic situation declined by 11 points to -43.
This was 13 points lower than the same month last year, despite the lockdown in place then.
Consumer sentiment towards the general economic situation over the past year also decreased by three points, but this was 14 points higher than in February 2021.
Worries over personal finances for the past 12 months declined by five points to -11, which was three points lower than last year.
While furniture retailers are gearing up for the Easter Sales, the major purchase index dropped by five points to -15, indicating that shoppers may be tightening their belts this season.
GfK client strategy director Joe Staton said: “Fear about the impact of price rises, from food to fuel and utilities, increased taxation and interest rate hikes has created a perfect storm of worries that have shaken consumer confidence.
“There’s clear anxiety in these findings as many consumers worry about balancing the household books at the end of the month without going further into debt.
“Slowing consumer spend slows the wheels of the UK economy, so this is unwelcome news. The good news on the easing or lifting of Covid restrictions around the UK seems to be doing little to lift the public’s mood.”
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