UK consumer confidence slips as energy costs and rate hike fears rise
A new S&P Global survey shows UK household confidence falling to a three-month low amid soaring energy bills and expectations of a Bank of England rate increase.
Research by S&P Global indicates that UK consumer confidence slipped to 42.7 in September, marking a three-month trough and signalling heightened financial strain among households. The decline follows sharp increases in energy bills linked to the Middle East conflict and rising expectations that the Bank of England will raise interest rates to combat inflation. About 53% of surveyed families now foresee a rate hike, compared with just 12% who expect a cut.
At the same time, job insecurity rose to its highest point in more than three and a half years, dampening optimism about future earnings. These factors have led to reduced willingness to spend and a rapid drawdown of savings, posing risks to the broader economic outlook as the government prepares its Budget.
Why it matters
Weak consumer confidence can curb spending, slowing growth and influencing upcoming fiscal and monetary policy decisions.
How this story developed
- Sep 1 Prime Minister Andy Burnham to Address Commons on First Day Back
- Sep 3 Burnham announced a plan to extend devolution to all parts of England and to increase public control of utilities.
- Sep 4 Bond yields surged to their fastest rise since the 2022 mini‑budget, wiping out £12 billion of fiscal headroom.
- Sep 6 Burnham pledged to transfer failing utilities into public ownership.
- Sep 6 John Healey will launch a £150 million fund aimed at supporting university spin-outs and other high-growth companies across northern England.
- Sep 7 Healey also pledged steps to curb borrowing costs, energy bills, regulation and labour expenses on UK businesses.
- Sep 9 Prime Minister Andy Burnham said he will not trim social security programmes to meet the 3 % of GDP defence spending goal and gave no timetable for reaching it.
- Sep 9 Burnham publicly rejected the welfare‑cut funding plan.
- Sep 13 Burnham faced his first Prime Minister's Questions where opposition members pressed him on funding for his agenda.
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