UK consumer confidence slips as 'ripple of fear' spreads, says GfK

(Sharecast News) - UK consumer confidence fell to an 11-month low in March, according to a closely watched survey from GfK on Friday, with concerns about the knock-on effects of the US-Iran war on the economy weighing on sentiment. The overall GfK consumer confidence index fell to -21 in March from -19 in February, marking the lowest reading since April 2025.

The indicator tracking personal financial situation over the past 12 months held steady at -7, while predictions for the next 12 months slipped to 1 from 2.

The past general economic situation sub-index remained firmly in negative territory at -43, more or less unchanged from February (-44), while the indicator tracking economic predictions for the coming year sank to -37 from -31 - some eight points lower than where it was in March 2025.

The major purchase index also deteriorated, falling to -18 from -14, while the savings index (which is not used to calculate the overall index score) jumped to 27 from 21.

"A ripple of fear is spreading," said Neil Bellamy, consumer insights director at GfK, referring to increased concerns about growing inflationary pressures.

"People simply do not feel the economy is robust enough to ride out the knock-on effects from the Middle East conflict. Moreover, the decline in purchasing intentions, coupled with a six-point rise in the Savings Index, indicates people are holding on to their money and avoiding making major purchases while they wait to see what the medium-term impact of the conflict will be," Bellamy said.