Concerns about the cost of living have reached record highs as UK families continue to “bear the burden”.

The new poll says confidence in household financing in the short term reached an all-time low in April, down six points from the previous month and a “huge” 57 points from April last year to 56.7.

The 12-month forecast also reached a new low, falling from 49.1 to 48.3.

A study by YouGov and the Center for Economic and Business Research (CEBR) found that overall consumer confidence has fallen by one point since March, but by 7.6 points from this time last year.

Other indicators, such as the cost of home, job security and business activity, remain stable, the survey said.

The new statistic is ahead of the release of new UK GDP figures, which are expected to grow by 1% in the first quarter of this year compared to 1.3 in the 4th quarter of last year.

Last week the Bank of England warned of double-digit inflation and a high risk of recession.

Households were asked how they thought their financial situation would change next year, and the survey then assigns an estimate based on the answers.

Anything above 100 is positive, while if it falls below 100, families are expected to do worse.

About a year ago the figure was above 100, but in recent months it has been declining.

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Cost of Living Q&A

Sense of compression

Based on 6,000 interviews per month, the Trust Survey measures attitudes toward household finances, property prices, job security and business activity.

Darren Yaxley of YouGov said: “As the cost of living crisis continues to grow, these data suggest that it is perhaps not surprising that household finances are a burden to consumers.

“Other indicators, such as the cost of housing, job security and business activity, remain stable, but it remains to be seen whether they will experience such a free fall if the country continues to feel pressure.”

Greater anxiety

Kay Neufeld, head of CEBR’s forecasting division, said the confidence index is in a “free fall as consumer sentiment is now at its lowest level in 17 months”.

She added: “It is worrying that consumers are also becoming less optimistic about the prospects of business activity in the future, which is probably due to greater anxiety about a potential recession in the future.”

Sarah Penels, a consumer finance specialist at Royal London, said: “Our cost of living study shows that people are already cutting back on their food, fuel and energy costs, and only one in 10 people says they haven’t planned anything. reduction.

“Although people with the lowest incomes will spend a larger percentage of their income on household expenses, we found that people from all income categories were concerned about high electricity bills.”

https://news.sky.com/story/cost-of-living-worries-sends-consumer-confidence-into-freefall-says-study-12611019

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