Consumer confidence hits near-historic low as inflation dents household budgets

Post-Christmas credit hangover also weighing on minds, writes Alastair Jamieson

Energy bills are denting consumer confidence but they could ease faster than feared (PA)

Consumer confidence has fallen again to a near-historic low as household budgets are squeezed, even as a new analysis suggests energy bills will fall faster than feared later this year.

GfK’s long-running Consumer Confidence Index dropped three points in January to minus 45 after a short-lived and weak rally in the last quarter.

Confidence in the general economy for the coming 12 months fell one point to minus 54 and remains 22 points lower than last January, while the forecast for personal finances increased to minus 27 but is still 25 points lower than this time last year. The major purchase index, an indicator of confidence in buying big ticket items, fell six points to minus 40 – some 30 points lower than last January.