British households are preparing for a new cost of living crisis, according to a survey by PwC. The conflict in the Middle East has significantly impacted confidence in the economy and personal finances. The survey indicates that consumer confidence in the United Kingdom has fallen at the fastest rate since June 2022, when inflation surged due to Russia's war of aggression against Ukraine and rising commodity prices.
The PwC survey, which measures factors such as consumer spending willingness and financial situation, recorded a value of -13 in April, a sharp decline from -1 in January and the lowest level since autumn 2023. Sam Waller, head of the consumer markets sector at PwC UK, stated: "Rising costs are forcing buyers to cut back on spending across the board, and sentiment is expected to worsen before it improves as consumers face higher energy and food costs later in the year."
Nearly 90 percent of the 2,068 consumers surveyed by PwC expressed concerns about the cost of living, and almost 80 percent plan to reduce their spending in the next three months. The number of those wanting to drive less to save money on rising fuel costs has doubled since January, from 12 percent to 24 percent.
The PwC survey reflects other surveys on consumer sentiment. Data company GfK also reported that consumer confidence in the United Kingdom fell to its lowest level since October 2023 in April, highlighting the increasing economic impact of the Iran conflict.
