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Beset by bad news, UK consumers gloomiest since lockdown
Published by maria gbaf
Posted on October 22, 2021
2 min readLast updated: January 29, 2026
Global Banking & Finance Review®
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Published by maria gbaf
Posted on October 22, 2021
2 min readLast updated: January 29, 2026
UK consumer confidence hits a low since lockdown due to rising inflation and COVID cases, complicating the Bank of England's interest rate decisions.
LONDON (Reuters) – People in Britain are their most downbeat since they were under lockdown in February, and are increasingly worried about the year to come as prices and COVID cases rise, according to a long-running survey published on Friday.
The GfK Consumer Confidence Index fell for a third month in a row to -17 in October, its lowest since February, from -13 in September. A Reuters poll of economists had pointed to a reading of -16.
Fuel and food shortages, a jump in inflation, the prospect of higher interest rates and climbing COVID-19 cases were all making consumers gloomier, Joe Staton, GfK’s client strategy director, said.
“Against a backdrop of cheerless domestic news … it is not surprising that consumers are feeling down-in-the mouth about the chilly winter months ahead,” he said.
Shoppers were also less keen to make big purchases in the run-up to Christmas, he added.
The loss of confidence among Britain’s consumers complicates the job for the Bank of England as it weighs up when to raise interest rates for the first time since the start of the pandemic.
Inflation is on course to surpass 4%, more than double the BoE’s target, but the pace of the economy’s recovery from its pandemic shock has slowed and the number of COVID-19 cases is the highest in Europe.
The central bank is due to announce its next policy decision on Nov. 4.
(Reporting by William Schomberg, editing by David Milliken)
The article discusses the decline in UK consumer confidence due to rising inflation, COVID-19 cases, and economic challenges.
Rising inflation is contributing to consumer pessimism, as it increases living costs and complicates economic recovery.
The Bank of England must balance rising inflation with slowing economic recovery when deciding on interest rate changes.
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