UK consumer confidence slipped in September, with the GfK index falling to -19 from -17 in August, missing the Reuters poll forecast of -18:
- All five measures of confidence declined, while a separate gauge of savings intentions dropped sharply.
- Economic sentiment about the outlook remains weak at -32.
GfK warned that expectations of tax increases in Finance Minister Rachel Reeves’ November budget could drag confidence down further. Reeves is set to raise taxes on November 26 to stay on track with budget targets, following last year’s increase in employer social security contributions.
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Softer confidence and looming fiscal tightening add downside pressure on GBP
Weaker sentiment reinforces expectations for cautious BoE policy; modest support for bonds (gilts)
For equities, consumer-facing sectors could face headwinds if tax hikes further dampen spending.
