FX.co ★ UK Consumer Confidence Sees Biggest Drop Since Pandemic

The UK GfK Consumer Confidence Index slumped by 11 points to -24 in October 2026 from -13 in September, its steepest monthly drop since April 2020 and the lowest reading since April. The figure came in well below market expectations of -15, as rising inflation, higher energy costs and the ongoing conflict in the Middle East weighed on household sentiment ahead of Finance Minister John Healey’s budget next week. Confidence in the economic outlook deteriorated sharply, while willingness to make major purchases fell to its lowest level in more than two years. Inflation expectations also climbed to their highest since April, fuelling concerns that the Bank of England may raise interest rates in November. The decline wipes out the summer’s recovery, with other surveys likewise pointing to weakening sentiment despite stronger economic growth in the first half of the year. GfK noted that confidence fell across all income, age and gender groups, underlining the financial pressure on households.