UK consumers hit by worries over war in Iran

LONDON, March 16 (Reuters) - British ‌consumers have ​turned ​their least confident since the start of last year following the outbreak of war in the Middle ‌East, financial data firm S&P Global said on Monday ⁠in an early sign of the potential impact of the conflict on ‌the economy.

S&P Global's Consumer Sentiment ‌Index - based on a survey conducted March 5-9 - dropped to 44.1 in March from 44.8 in February, its lowest ​since January 2025.

"A marked deterioration of consumer sentiment in March means we are seeing the first concrete signs of ⁠the war in the Middle East damaging the UK economy," Maryam Baluch, an economist ​at S&P Global Market Intelligence, said.

Households were the most downbeat about their financial prospects since December 2023 ​and the wariest about making big ‌purchases in 14 months, the firm said.

The Bank of England, along with private economists, is watching ⁠for the impact of the U.S-Israeli war with Iran on the economy, including any hit to consumer spending as the rise in ⁠global energy prices threatens to push up inflation.

The BoE is likely to ​delay a previously expected interest rate cut on Thursday.

A separate survey published by polling firm YouGov on Monday showed 77% of respondents expected the ‌conflict would have a negative impact on the UK and global economies in the longer term, ‌and 64% expected a hit to their household finances.

Only one ⁠in four of those surveyed ‌thought the attacks on ​Iran would succeed in stunting the country's apparent nuclear ambition, YouGov said.

(Writing by William Schomberg; editing by Andy ‌Bruce)

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