Consumer confidence declines sharply after outbreak of Iran war

(Sharecast News) - UK consumer confidence weakened sharply in March, marking its steepest decline since the shock of last year's 'Liberation Day' tariffs from US president Donald Trump, according to the latest index from YouGov and the Centre for Economics and Business Research. The headline consumer confidence index fell by 2.9 points to 105.8 during the period from 1 to 24 March.

While the reading remained above the 100 threshold that signals positive sentiment, it represented the largest monthly drop since April 2025 and left the index at its lowest level since December 2023.

The deterioration was driven primarily by a sharp fall in households' financial outlook.

Forward-looking expectations for personal finances declined by 9.4 points to 85.6, the steepest monthly drop since August 2022, while perceptions of finances over the past 30 days also weakened, falling 4.5 points to 85. Both measures remain firmly in negative territory.

Sentiment around the housing market also softened, with expectations for house prices over the next 12 months declining by 4.9 points.

However, at 129.9, the indicator continued to suggest broadly positive expectations for property values.

Labour market perceptions showed further signs of strain.

Employees' assessment of their job security over the past month fell by 2.5 points to 90.1, remaining negative, while expectations for future job security edged down by 1.5 points to 116.1.

In contrast, business activity was the only component to show resilience.

Confidence in workplace activity over the past 30 days rose modestly by 0.7 points to 108.5, while expectations for the year ahead were unchanged at 117.8.

The survey was based on more than 6,000 monthly interviews conducted by YouGov, capturing views on household finances, job security, property prices and business activity across both recent experience and 12-month expectations.

Reporting by Josh White for Sharecast.com.