UK Consumer Confidence Hits Record Low on Iran War

Consumer confidence in the United Kingdom has plunged to record lows following the outbreak of war in Iran, driven by surging energy prices and fears of renewed inflation, according to a survey released by the British Retail Consortium.

The survey, conducted by Opinium among 2,000 UK adults between March 10 and 13, found that a net 53 percent of respondents expect the economy to worsen over the next three months, up from a net 30 percent in February. Expectations for personal finances also deteriorated sharply, with a net 17 percent anticipating a decline, compared to a net 6 percent the previous month. These figures mark the lowest levels since the survey began in March 2024. The drop was most acute among baby boomers, who rely heavily on investment and pension funds.

The conflict has disrupted key trade routes, including the effective closure of the Strait of Hormuz and attacks on regional infrastructure, leading to a sharp rise in global energy costs. Petrol prices have increased by 12 pence per litre, or 9 percent, since the war began, according to the RAC. This has heightened concerns about inflation and slower economic growth in oil-importing nations like the UK.