UK consumer confidence has ‘collapsed’ during Iran war, retail industry says
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<p>BRC survey finds public even more pessimistic about finances as higher energy prices fuel inflation fears</p><p>Consumer confidence in the UK has “collapsed” since the start of the Iran war, according to new research from the British Retail Consortium.</p><p>The sharp rise in energy prices caused by the effective closure of the strait of Hormuz and attacks on infrastructure in the region has led to fears of higher inflation and weaker growth across oil-importing
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UK consumer confidence has ‘collapsed’ during Iran war, retail industry says BRC survey finds public even more pessimistic about finances as higher energy prices fuel inflation fears Consumer confidence in the UK has “collapsed” since the start of the Iran war, according to new research from the British Retail Consortium. The sharp rise in energy prices caused by the effective closure of the strait of Hormuz and attacks on infrastructure in the region has led to fears of higher inflation and weaker growth across oil-importing countries. Asked about the state of the UK economy over the next three months, 64% of respondents told a survey they expected it to get worse. Just 11% thought it would get better. The resulting balance of -53% was sharply lower than the -20% reading a month earlier. The UK adults surveyed by Opinium on behalf of the BRC between 10 and 13 March were also significantly more pessimistic about the outlook for their personal finances, with a negative balance of -17, down from -6 in February. Helen Dickinson, the chief executive of the BRC, said: “Consumer confidence collapsed as the Middle East conflict raised the prospect of higher inflation in the months ahead. “Just as the economy was beginning to turn a corner on inflation, the rise in global energy prices is particularly unwelcome for businesses and families.” Analysts have been hastily downgrading their UK growth forecasts for 2026 amid fears that higher energy prices – which are already evident at petrol pumps – will prompt nervous shoppers to cut back on other spending. News of the sharp decline in consumer confidence came after official figures showed the inflation rate held steady at 3% in February, before the war upended expectations. As recently as last month, the Bank of England expected inflation to return to the government’s 2% target in spring, opening the way for more interest rate cuts. However, last week’s monetary policy committee meeting left interest rates on hold – and hinted...
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