PwC April survey shows Cost Of Living Crisis deepens as confidence hits -13
PwC's April survey put UK consumer confidence at -13, deepening the cost of living crisis for households already facing higher prices. The reading was down from -1 in January and marked the lowest level since autumn 2023.
The survey of 2,068 consumers also found almost 90% were concerned about the cost of living. Almost 80% said they planned to cut spending over the next three months, while Sam Waller said rising costs are prompting shoppers to pull back spend across the board.
PwC April survey
Waller, leader of industry for consumer markets at PwC UK, said: "Rising costs are prompting shoppers to pull back spend across the board, and it’s expected sentiment will get worse before it gets better, as consumers face higher energy and food costs later in the year". That leaves retailers and service providers facing a weaker spending backdrop just as households are already trimming purchases.
The survey showed the pressure was not confined to one age group. PwC said confidence about household finances was down across all age groups, with the number of people under 35 who feel financially healthy falling by 20% and those under 35 who are struggling or in trouble with their bills and finances rising by 9%.
Middle East conflict impact
PwC linked the latest reading to worries about the Middle East conflict and its effect on prices and finances. The Bank of England said last week that higher inflation in the UK was going to be unavoidable because of the conflict, and the Office for National Statistics said consumer prices index inflation rose to 3.3% in March from 3% in February.
Consumers are already acting on those concerns. The proportion saying they would drive less to save money on rising fuel costs doubled from 12% to 24% since January, showing how quickly households are adjusting everyday spending. That is happening alongside a faster fall in consumer confidence over the last three months than at any point since June 2022.
UK spending cuts
PwC's survey sits alongside other signs of caution in the wider economy. KPMG and the Recruitment and Employment Confederation said there was a faster fall in permanent staff appointments across the UK in April than in the previous two months, and job vacancies fell for the 30th successive month.
For consumers, the practical shift is already clear: spending plans are moving down, fuel use is being cut, and confidence is weaker than it was in January. With almost 80% intending to reduce outgoings over the next three months, the immediate pressure is on household budgets rather than on any single purchase category.
