GfK: The momentum behind the recovery in UK consumer confidence is weakening.

UK consumer confidence rose only slightly in September, suggesting that the optimism triggered by Andy Burnham becoming prime minister is beginning to fade as concerns over the cost of living intensify. GfK said its consumer confidence index rose by just 1 point to -13, after surging 9 points over the previous two months. Consumers also said their willingness to make major purchases had declined. Neil Bellamy, consumer insights director at GfK, said in a telephone interview: "This is a tipping point. People are looking ahead and are worried about where energy prices are going." Burnham replaced Keir Starmer as prime minister in July and immediately announced a series of measures aimed at helping people cope with the cost-of-living crisis. However, that optimism, dubbed the "Burnham bounce," appears to be running out of momentum as consumers bear the full impact of the Iran war. Rising fuel and energy costs are pushing up inflation and increasing pressure on the Bank of England to raise interest rates. At the same time, there is growing speculation that Chancellor John Healey will raise taxes in next month's Budget to repair the damage done to the public finances by recent turbulence in the bond market. An analysis by Bloomberg Economics found that household energy bills could rise by another 25% when the price cap is reset in January an increase that would push CPI inflation above 4% in 2027.