Consumer confidence is at a record low – here’s why that matters

Prices are rising fast and people are cutting back. It should worry us all, writes Ben Chapman

Living costs are continuing to rise (PA Media)

Another day, another major warning sign for the UK economy. Consumer confidence had dropped to its lowest level on record, and the records go back almost half a century.

A closely watched index of how people are feeling about the prospects for their finances and the wider economy has dropped to -40 in May, from an already abysmal -38 last month.

That's one point lower than the previous low reached during the financial crisis in July 2008.