UK Confidence Drops 11 Points Ahead of Budget

UK consumer confidence plunged 11 points to -24 in October, its sharpest monthly fall since the pandemic and a decline comparable to the aftermath of the 2016 Brexit vote. Rising fuel and energy costs, inflation linked to the Middle East conflict, higher borrowing costs and uncertainty ahead of the Budget contributed to the drop, reversing the summer’s recovery and weakening households’ outlook and appetite for major purchases. Separate British Retail Consortium data also showed confidence in the economy and personal finances worsening, even as reported retail and overall personal spending increased.