Consumer confidence dropped further in March as concerns over the cost of living grew, with 30-year-high levels of inflation and soaring fuel and food prices.
Consumer confidence declined by five points to -31 in March 2022, according to the latest data from GfK.
This was the same level as November 2020 during the UK’s second lockdown and 15 points lower than the same month last year.
All measures dropped in March as consumers expressed concerns over rising prices, the war in Ukraine and growing Covid infection rates.
Feelings towards the general economic situation over the coming year declined the most due to worries about inflation, down six points to -49. This was 32 points lower than March last year.
The measure for the general economic situation over the past 12 months also dropped one point to -51, which was nine points higher than last year.
Consumers were also more concerned about their personal finances, declining by four points for the year ahead to -18, which was 28 points lower than March 2021.
Sentiment towards their personal financial situation over the past year also dropped two points to -13, which is 11 points worse than the same month last year.
The major purchase index also took a hit, decreasing by nine points to -24 as the cost-of-living crisis caused consumers to tighten their spend in discretionary categories.
GfK client strategy director Joe Staton said: “A wall of worry is confronting consumers this month and there is an unmistakable sense of crisis in our numbers.
“Consumers across the UK are experiencing the impact of soaring living costs with 30-year-high levels of inflation, record-high fuel and food prices, a recent interest-rate hike and the prospect of more increases to come, and higher taxation, too – all against a background of stagnant pay rises that cannot compensate for the financial duress.
“This is the fourth month in a row that UK consumer confidence has dropped. With a headline score of -31, we are at a level last seen in October and November 2020 when Covid numbers were rising.
“Confidence in our personal financial situation and in the wider economy are severely depressed, while the daily news of unimaginable suffering from a horrifying war in Europe and rising Covid numbers at home is adding to the bleak mood. The outlook for consumer confidence is not good; it’s certain there’s more bad news to come.”
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