UK consumers, worried about Iran war, turn most downbeat since 2023

April 23 (Reuters) - British consumer ‌morale slid this ​month ​to its lowest since October 2023 as households ramped up their expectations for price rises, according to a survey on ‌Thursday that added to signs of economic fallout from the ⁠Iran war.

GfK's consumer confidence index, the longest-running survey of its kind in Britain, fell ‌to -25 in April from -21 ‌in March, as expected in a Reuters poll of economists.

It marked the lowest reading since Britain fell into a short recession during the ​second half of 2023, following a bout of double-digit inflation.

GfK's survey was originally due to be released on Friday, but the market ⁠research company allowed publication ahead of schedule because of a broken embargo.

All of the survey's key ​components - including gauges of personal financial and economic confidence - fell in April, with the exception of its major purchases ​index which was flat.

"Everyone is grappling ‌with rapid price rises, especially at the fuel pumps, which are taking a dent out of household budgets, and ⁠people know further price hikes are coming," said Neil Bellamy, consumer insights director at GfK.

An Ipsos survey of the public published on Wednesday showed economic optimism ⁠at its lowest ebb since records began in 1978.

GfK said 85% of British consumers ​expected to see prices rise in the next 12 months, up from 79% in March and the highest share since November 2022, when inflation was in double ‌digits.

Two long-running business surveys published earlier on Thursday showed inflation indicators for companies flashing red, marked by record ‌increases in price gauges.

GfK's savings index rose to its highest level since ⁠July 2025. Bellamy said that ‌was "often an indication that ​people are concerned about what lies ahead, so those who can are building contingency funds."

(Reporting by Andy BruceEditing by ‌William Schomberg)

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