The country's major purchasing index is in free fall as rising food and energy prices put pressure on households.
Consumer sentiment in the United Kingdom fell to record lows in August as the cost-of-living crisis worsened and inflation reached a four-decade high.
According to GfK data, British consumer confidence fell to minus 44 in August from minus 41 in July, the lowest level since the survey began in 1974.
Sentiment has been steadily declining throughout 2022 and fell by three points in August. It was minus 8 a year ago.
"The main driver of these findings is a sense of frustration with the UK economy." Since December 2021, our sub-measure on the general economy has decreased month on month," GfK client strategy director Joe Staton said.
According to Staton, all five measures in the index, which tracks changes in personal finances over the previous 12 months, fell this month, reflecting growing concern about the cost of living crisis. According to reports, the major purchase index fell by four points in August.
In July, UK consumer price inflation hit a 40-year high of 10.1%, as spiraling food and energy prices exacerbated the historic squeeze on households.
"With headline after headline revealing record inflation eroding household purchasing power, the strain on many in the UK's finances is alarming," Staton said.