UK consumer confidence plunges 11 points as cost of living bites
GfK's UK consumer confidence index fell 11 points to -24 in October 2026, the sharpest monthly drop outside the pandemic since July 2016, The Guardian reports.
What you need to know
UK consumer confidence fell by 11 points in October 2026 to -24, its sharpest monthly drop outside the pandemic since July 2016, The Guardian reports. The decline comes as inflation stood at 3.5% and the government deficit reached £24.5bn ahead of the chancellor's budget.
- GfK's consumer confidence index dropped 11 points to -24 in October 2026.
- The monthly fall was the largest outside the pandemic since July 2016.
- Headline inflation rose to 3.5% last month, official figures showed.
- The government deficit was a worse-than-forecast £24.5bn.
- The chancellor is due to deliver his first budget on Wednesday.
Confidence index records sharp fall
The Guardian reports that GfK's UK consumer confidence index fell by 11 percentage points in October 2026 to -24. GfK said the last time the index fell by this much in a single month was July 2016, after the EU referendum result. The index's largest ever monthly fall was 25 points in March 2020, after the first UK lockdown began.
GfK consumer insights director Neil Bellamy attributed the drop to relentless cost-of-living pressures and unresolved regional conflicts that are contributing to domestic inflation, which he said is now at 3.5%. The major purchase index fell by 14 points to -22, suggesting consumers may cut spending over winter to accommodate higher energy bills, The Guardian reported.
Budget pressure builds
The Guardian reports that the chancellor, John Healey, is due to deliver his first budget on Wednesday, less than a week after the confidence data was published. Healey has pledged measures to provide breathing space to households but warned that the government has limited resources as Middle East conflict pushes UK borrowing costs to their highest level in decades.
Official figures released on Wednesday showed headline inflation rose by more than expected to 3.5% last month and the government deficit was a worse-than-forecast £24.5bn, The Guardian reported. Separate CBI figures showed subdued manufacturing investment intentions, with the lobby group calling for the budget to cut business electricity costs, reduce labour costs and reform business rates.
When is the chancellor's budget expected?
The Guardian reports that John Healey is due to deliver his first budget on Wednesday, less than a week after GfK published the October consumer confidence data on 23 October 2026.
Sources & context
- UK consumer confidence falls at fastest rate since Brexit vote as cost of living bites ↗The Guardian
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