Consumer confidence fell in September amid fears over the state of the UK economy and the potential of higher taxes.
Expectations for the state of the overall economy dropped from -32 in August to -36 in September, the British Retail Consortium (BRC) reported.
Brits’ personal financial situations slumped from -6 last month to -7, as personal spending also dipped to +14.
The figures mark the fourth consecutive worsening of Brits’ economic confidence.
August inflation stayed at 3.8%, fueled by high food and services prices. Core food price inflation was 5.1% over the year.
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BRC CEO Helen Dickinson said: “Worries about the Budget, combined with the increase in the cost of living, have eroded confidence, with little sign that inflation will come down soon.”
UK consumer confidence hit its highest level of the year in August, despite “clouds on the horizon,” in terms of growing unemployment and inflation.
The GfK’s consumer confidence index rose by two points to -17 over the month, boosted by improved personal finances, likely due to the recent reduction to interest rates.
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