British households are becoming increasingly worried about rising costs and their financial future, according to a new survey showing consumer confidence has fallen at its fastest rate since 2022. The report found many families are preparing to cut spending as fears grow over inflation, fuel prices and the wider economy.
Consumer Confidence Falls to Lowest Level Since 2023
New figures from PwC showed UK consumer confidence dropped sharply from -1 in January to -13 in April. It marks the biggest decline since June 2022, when inflation surged following Russia’s invasion of Ukraine and rising global commodity prices.
The survey measured how consumers feel about their finances, spending plans and the wider economy. Researchers found concerns had increased across nearly all age groups, with many households expecting financial pressure to worsen later this year.
Most Households Are Worried About Rising Costs
According to the survey, almost 90% of consumers said they were worried about the cost of living. Around 80% said they plan to reduce spending over the next three months as household budgets come under growing strain.
The number of people planning to drive less to save money on fuel has also doubled since January, rising from 12% to 24%. PwC warned higher energy, food and fuel prices are continuing to damage confidence among consumers already dealing with stretched finances.
Young Adults Are Also Feeling Financial Pressure
Although younger people remain slightly more optimistic than older generations, the report found financial confidence among under-35s has also weakened significantly, reports The Guardian.
PwC recorded a 20% drop in the number of younger adults who consider themselves financially healthy. At the same time, the number of younger people struggling with bills and financial problems increased by 9%.
Inflation and Global Tensions Continue Affecting Households
The latest survey follows warnings from the Bank of England, which recently said higher inflation in the UK may become unavoidable because of instability in the Middle East and rising global energy costs.
Official figures showed UK inflation rose to 3.3% in March, moving further above the Bank of England’s 2% target. Consumer confidence has also weakened in the United States as households there face similar concerns over rising prices and economic uncertainty.
Job Market Concerns Add to Financial Anxiety
Separate figures from KPMG and the Recruitment and Employment Confederation showed permanent job appointments declined again in April as employers responded to economic uncertainty and rising business costs.
Job vacancies also fell for the 30th consecutive month, although businesses increased their use of temporary workers. With living costs continuing to rise, many households are now cutting back on spending and delaying purchases as concerns about the economy continue growing.
