Finance
UK GfK Consumer Sentiment Index Drops to Lowest Since 2023
Published by Global Banking & Finance Review®
Posted on April 23, 2026
2 min readLast updated: April 23, 2026
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In April, the UK’s GfK consumer sentiment index fell to –25—the weakest since October 2023—driven by escalating expectations of price hikes amid fallout from the Iran war and rising energy costs. Economic growth forecasts have also been downgraded.
UK consumers, worried about Iran war, turn most downbeat since 2023
British Consumer Confidence Hits New Lows Amid Economic Uncertainty
Consumer Morale and Survey Findings
April 23 (Reuters) - British consumer morale slid this month to its lowest since October 2023 as households ramped up their expectations for price rises, according to a survey on Thursday that added to signs of economic fallout from the Iran war.
GfK's consumer confidence index, the longest-running survey of its kind in Britain, fell to -25 in April from -21 in March, as expected in a Reuters poll of economists.
It marked the lowest reading since Britain fell into a short recession during the second half of 2023, following a bout of double-digit inflation.
Survey Release and Key Components
GfK's survey was originally due to be released on Friday, but the market research company allowed publication ahead of schedule because of a broken embargo.
All of the survey's key components - including gauges of personal financial and economic confidence - fell in April, with the exception of its major purchases index which was flat.
Expert Commentary
"Everyone is grappling with rapid price rises, especially at the fuel pumps, which are taking a dent out of household budgets, and people know further price hikes are coming," said Neil Bellamy, consumer insights director at GfK.
Rising Price Expectations and Broader Economic Impact
An Ipsos survey of the public published on Wednesday showed economic optimism at its lowest ebb since records began in 1978.
GfK said 85% of British consumers expected to see prices rise in the next 12 months, up from 79% in March and the highest share since November 2022, when inflation was in double digits.
Business Surveys and Inflation Indicators
Two long-running business surveys published earlier on Thursday showed inflation indicators for companies flashing red, marked by record increases in price gauges.
Savings Index and Consumer Behavior
GfK's savings index rose to its highest level since July 2025. Bellamy said that was "often an indication that people are concerned about what lies ahead, so those who can are building contingency funds."
(Reporting by Andy BruceEditing by William Schomberg)
Key Takeaways
- •GfK’s UK consumer-confidence gauge dropped four points to –25 in April from –21 in March—the lowest reading since October 2023, as households grew more fearful of higher prices tied to the Iran conflict (bloomberg.com).
- •The Iran war has increased petrol and energy costs, dampening households’ economic outlook and prompting rising inflation expectations, even as energy tariffs remain capped temporarily (bloomberg.com).
- •The IMF has cut its 2026 UK growth forecast to 0.8%—the biggest downgrade among G7 countries—citing inflation pressures and weakening consumer confidence stemming from the Middle East conflict (moneyweek.com).
References
Frequently Asked Questions about UK GfK consumer sentiment index drops to lowest since 2023
1What is the UK GfK consumer sentiment index?
The UK GfK consumer sentiment index is the longest-running survey of consumer confidence in Britain, measuring households' outlook on the economy.
2Why did UK consumer morale fall in April 2024?
Consumer morale dropped due to increased expectations for price rises and economic concerns linked to the Iran war.
3How did the index perform compared to previous months?
The index fell to -25 in April from -21 in March, marking the lowest reading since October 2023.
4How is the consumer sentiment index connected to inflation?
The index reflects households' inflation expectations, which influences their spending and confidence in the economy.
5Why was the GfK survey released earlier than scheduled?
GfK allowed early publication due to a broken embargo, with original release planned for Friday.
