Some economists have linked the drop to officials' warnings of a "painful" Budget at the end of August, although it is impossible to prove a link. There were "major corrections" - or double digit falls - for consumers' perception of the general economic situation, as well as how likely they were to make big purchases.

Starmer insists he is setting out reality of ‘badly damaged economy’ as GfK survey shows sharp fall in household morale

GfK's Consumer Confidence Index fell seven points in September to minus 20, with significant drops in predictions for personal finances and the general economy over the coming year

The last time the consumer confidence index declined so steeply was in April 2022, in the wake of Russia's invasion of Ukraine.

Consumer confidence falls sharply as households ‘nervously’ await Budget - GfK’s Consumer Confidence Index fell seven points to minus 20, with significant drops in predictions for personal finances and the general economy.