Consumer confidence slumped at the start of the year as gloom descended over households.
In a bleak report, S&P Global said its ‘consumer sentiment index’ is at a nine-month low as family finances suffer and concerns about job security rise.
The index has fallen for four months in a row – suggesting Rachel Reeves’ Budget in November has only added to the anxiety felt by households.
The report came as the International Monetary Fund (IMF) said the UK economy will continue to lag behind the US and Canada this year and next.
The projections suggest the Chancellor is failing in her mission to turn Britain into the fastest-growing economy in the G7.
While the UK is forecast to grow by 1.3 per cent this year and 1.5 per cent the next, the IMF pencilled in 2.4 per cent and 2 per cent for the US and 1.6 per cent and 1.9 per cent for Canada.
Money worries: In a bleak report, S&P Global said its ‘consumer sentiment index’ is at a nine-month low as family finances suffer and concerns about job security rise
Reeves trumpeted the IMF’s prediction that the UK will be the best performing major European economy over the next two years.
But shadow chancellor Sir Mel Stride said: ‘The economy is flatlining. Gaslighting the country won’t fix the economy – only a serious plan to lower taxes and control welfare will.’
A report by Capital Economics warned a fresh round of US tariffs could knock up to 0.75 per cent off the economy and tip Britain into recession.
Donald Trump has threatened to impose a 10 per cent levy on imports from the UK and others backing Greenland from February 1.
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