UK Consumer Confidence Hits Three-Year Low Amid Interest Rate Fears

UK consumer confidence has hit a three-year low due to concerns about interest rate rises and job security, according to a leading survey. The S&P Global consumer sentiment index dropped to 42.7 in September from 42.9 in August, indicating 'a notable strain on financial confidence across UK households'.

The survey found that over 50% of respondents expected an increase in interest rates by the Bank of England, which would lead to higher mortgage payments. In fact, fixed-rate mortgage costs have already jumped to multi-year highs, with the average two-year fixed residential mortgage rate rising to 5.88%.

The threat of artificial intelligence and caution among employers about hiring new staff sent consumer confidence in the jobs market plummeting to its lowest level in three-and-a-half years. The British Chamber of Commerce has called for extra support from the government, citing a survey that found only 17% of companies were planning to increase investment in the coming months.