The confidence of personal finance consumers in April dropped below the level seen after the 2008 financial crash, according to research company GfK’s long-running Consumer Confidence Index.

The overall Consumer Confidence Index, published today, plunged by seven points in April to -38 while the sister Personal Finance Index dropped by six points to -19, 16 points worse than April 2021.

GfK said consumers were less confident about the future of their savings and the economy than they were after the 2008 crash.

The firm said today's headline scores are just one point off the lowest on record. All five key indexes used by GfK have dropped significantly since March. 

Soaring inflation, economic concerns and rising interests rates have all take their toll on confidence, GfK says.

Key data from the latest consumer confidence survey revealed:

• UK Consumer Confidence in April fell by 7 points to -38  

• The Personal Financial Index fell to -19; 16 points worse than April last year. The forecast for personal finances over the next 12 months has decreased eight points to -26; 36 points lower than this time last year.

• The General Economic Situation Index during the last 12 months is down 9 points at -60; two points lower than in April 2021. Expectations for the general economic situation over the coming 12 months have dropped by six points to -55; 44 points lower than April 2021.

• The Major Purchase Index decreased by eight points to -32 in March; 20 points lower than this month last year.

• The Savings Index is down by eight points to +10 in April; 12 points lower than this time last year. 

Joe Staton, client strategy director GfK, said: “The cost crunch is really hitting the pockets of UK consumers and the headline confidence score has dropped to a near historic low. 

“The scores looking at the next 12 months for our personal finances at -26 and the general economy at -55 are worse than the 2008 financial crash. The personal finance score for the next year is also worse than the initial Covid shock in 2020. 

“When rising inflation and interest rates meet low growth and declining incomes, consumers will understandably be extremely cautious about any spending. There’s clear evidence that Brits are thinking twice about shopping, as seen in the tumbling Major Purchase Index – now is not considered to be a good time to buy. 

“This is dire news for consumer confidence and with little prospect of any economic relief on the horizon we can only forecast further falls in the Index for the year ahead.”

To assess Personal Finance confidence consumers were asked two questions:  ‘How has the financial situation of your household changed over the last 12 months?’ and ‘How do you expect the financial position of your household to change over the next 12 months?’ (a lot better – a little better – stay(ed) the same – a little worse – a lot worse).

• The UK Consumer Confidence Barometer is conducted by GfK. This month’s survey utilised a sample of 2,000 individuals aged 16+. The survey has been running in various forms since 1974.