UK Consumer Confidence Plummets, Prices Set to Rise

0:00On April 23rd, UK consumer confidence just tanked to its lowest since October 2023, dropping four points to minus 25. That's according to GFK's long-running index, all thanks to the economic ripples from the war involving Iran shaking up energy markets and supply. Chains. Businesses are feeling the heat, too, with surveys showing their set to hike prices soon as costs skyrocket. Meanwhile, three key business polls paint a rough picture. S&P Global's purchasing manager's index flagged the biggest cost jump in services since 1996, while manufacturing saw raw material, prices soar. The CBI reported industrial sentiment crashing at its fastest clips since early COVID days. Consumers are straight up jittery, hit by soaring fuel and looming energy bills that scream inflation. Over a quarter of firms in the Office for National Statistics Survey Plan Price Bumps Next month, mostly blaming energy costs. Four in 10 saw their input prices rise last month, the most since late 2022.

1:04Economists warned this could push UK inflation higher, maybe even forcing the Bank of England to lift interest rates later this year. Markets bet on at least one hike, but expect a hold at next Thursday's meeting amid the war fog. Activity and services and manufacturing actually be forecast, hitting 52 from 50.3. Thanks to folks stockpiling ahead of, shortages. As this Middle East mess drags on, Britain's economy stays on edge, with price pressures building and confidence in the gutter folks better brace for, that cost of living squeeze.