UK Consumer Confidence Falls in May as Energy Costs Rise

A survey found that confidence among Britain’s lowest earners fell sharply in May. Average-income households reported drawing on savings to meet everyday expenses as energy costs increased. The decline coincided with higher energy prices linked to developments involving Iran. Households across income levels adjusted spending patterns in response to the pressure on budgets.

The survey measured consumer sentiment across different income groups. It recorded the largest drop among the lowest earners while noting smaller but measurable effects on middle-income households.

Lower-income households reduced discretionary spending.

Middle-income households shifted to using savings rather than cutting back on essentials.