# UK consumer mood sinks to new depths despite energy bills help
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-23
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: UK Consumer Confidence Hits Record Low Amid Government
Meta Description: Latest data shows consumer confidence in the UK hitting rock bottom, with no relief in sight despite UK government's promises of support.
URL: https://financedigest.com/uk-consumer-mood-sinks-to-new-depths-despite-energy-bills-helphtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-22t230811z1lynxmpei8l15frtroptp4britain-dailylife-1736815164665-compressed.jpg)

By Andy Bruce

LONDON (Reuters) – British consumer confidence slid this month to its lowest level since records began in the mid-1970s, with scant sign of any boost from Prime Minister Liz Truss’s announcement of additional support for households.

The consumer confidence index from market research firm GfK fell to -49 in September from -44 in August, worse than all forecasts in a Reuters poll that pointed to an improved reading of -42.

Readings of -30 and below have presaged recession on four out of five occasions [since the survey](https://www.financedigest.com/sentiment-in-uk-finance-falls-at-fastest-pace-since-2019-survey.html "Sentiment in UK finance falls at fastest pace since 2019, survey") started in 1974.

The survey straddled both Truss’s statement on capping [household energy bills](https://www.financedigest.com/44-of-uk-households-are-worried-theyll-have-to-foot-the-bill-for-net-zero.html "44% of UK Households are Worried They’ll Have to Foot the Bill for Net Zero") and the death of Queen Elizabeth on Sept. 8 but GfK recorded no significant change in responses after that date.

Overall, the readings underlined the precarious state of Britain’s economy hours before new [finance minister](https://www.financedigest.com/scottish-finance-minister-kate-forbes-to-run-for-countrys-leadership.html "Scottish finance minister Kate Forbes to run for country’s leadership") Kwasi Kwarteng updates parliament on measures to help households and businesses.

Joe Staton, [client strategy director](https://www.financedigest.com/exit-bee-hires-neil-stewart-as-business-development-director-as-its-client-roster-grows.html "Exit Bee hires Neil Stewart as Business Development Director as its client roster grows") at GfK, said rock-bottom readings for the survey’s forward-looking gauges were especially worrying. The survey follows much weaker-than-expected [retail sales](https://www.financedigest.com/spains-november-retail-sales-fall-0-6-on-year.html "Spain’s November retail sales fall 0.6% on year") data for August.

Consumers are buckling under the pressure of the UK’s growing cost-of-living [crisis driven by rapidly rising](https://www.financedigest.com/bank-shares-rise-after-credit-suisse-rescue-eases-crisis.html "Bank shares rise after Credit Suisse rescue eases crisis") food prices, domestic fuel bills and mortgage payments,” Staton said.

GfK’s gauges of [economic and personal financial confidence each fell to their lowest level](https://www.financedigest.com/using-agility-to-resist-economic-instability-and-level-the-playing-field.html "Using agility to resist economic instability and level the playing field") since comparable records from the European Commission began in 1985.

Staton said [consumers will be anxious to hear what Kwarteng says](https://www.financedigest.com/citigroup-says-will-close-russian-consumer-commercial-business.html "Citigroup says will close Russian consumer, commercial business") on Friday.

“It will also be a major test for the popularity of Liz Truss’s new government.”

Truss announced on Sept. 8 that [Britain will cap consumer energy bills for two years](https://www.financedigest.com/2043-the-year-britain-will-turn-cashless.html "2043: The year Britain will turn cashless") and funnel billions to prop up power companies.

(Reporting by Andy Bruce, editing by William James)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---