Cost-of-living pain wipes out the 'Burnham bounce' as consumer confidence suffers its biggest slump in a decade

GfK's index crashed 11 points to minus 24 in October, the steepest fall since the July 2016 Brexit vote outside Covid. Plans to buy big items like sofas and washing machines slumped 14 points. Brent crude hit $112.68 a barrel as Trump's Iran war drives up fuel and energy bills. Chancellor John Healey will deliver his first Budget on Wednesday with little room for relief.

GfK's Neil Bellamy called it 'an extraordinary collapse' in consumer confidence.

Wage growth has slowed to 4.5 per cent, the weakest since 2021, while inflation sits at 3.5 per cent.

The gloom hit every income, age and gender group, with no single event to blame.