Jan 24 Reuters British consumer confidence sank this month to its lowest level in over a year, marking the steepest drop between the months of December and January since 2011, according to a survey that added to signs of a slowdown in the economy.

The monthly consumer confidence index published by market research firm GfK fell in January to 22 from 17 in December, its lowest reading since December 2023. A Reuters poll of economists had pointed to smaller decline to 18.

The GfK survey is not adjusted for seasonal variations and has shown a tendency in recent years to fall in January, but the latest drop was larger than usual.

All five of the survey39;s components declined, echoing a run of downbeat economic signals since finance minister Rachel Reeves39; Oct. 30 budget, which raised taxes on businesses to help increase funding for investment and public services.

These figures underline that consumers are losing confidence in the UK39;s economic prospects, said Neil Bellamy, consumer insights director at NIQ GfK.

He pointed to a big rise in GfK39;s savings index which is not part of the overall consumer confidence index as an example of the cautious mood among households.

Growth in Britain39;s economy has slowed to crawl, according to the latest official data, although many economists still think the higher government spending in Reeves39; budget will help to raise growth albeit temporarily later this year.

The Bank of England is widely expected by investors to…