All five measures making up GfK’s Consumer Confidence Index have declined in April, putting the overall score at its lowest all year.
Consumer confidence has dropped by four points in April following the introduction of tariffs and ongoing economic impact, according to GfK’s Consumer Confidence Barometer.
The overall index score, which brings together five different measures of consumer confidence, dropped to –23 in April, the lowest level it’s been all year. All measures were down in comparison to last month.
“April was an extraordinarily unsettling month as the tariffs controversy that began earlier in the year filtered through to consumer sentiment,” explains Neil Bellamy, consumer insight director at GfK.
April’s figures capture the economic issue with a five-point drop in how consumers feel about the economy over the past year, which is down to –3, six points worse than April 2024.
Looking ahead over the next 12 months, the picture is even more bleak, with expectations for the general economy falling by eight points to –37, which is 16 points worse than a year ago.
Consumers’ outlook on their personal finances over the next 12 months is also pessimistic. It’s down three points to –3, five points worse than this time last year.
Offering some glimmers of hope, there’s only limited impact (a two-point fall) on major purchase intentions, which is down to –19, but Bellamy notes that this could change quickly.
Meanwhile, the savings index, which tracks whether consumers believe now is a good time to save, has recovered five points to reach 30 in April, which is four points better than this time last year.
Bellamy suggests that people find the talk of tariffs scary, however, brands should show they understand the fear and offer some reassurance if they want to cut through the noise.
“It may well be a tough fight, but savvy marketers looking to encourage consumer spending on British high streets have the skill set to help people work through this,” he adds.
