Maryam Baluch, Economist at S&P Global Market Intelligence, said:

“Consumer sentiment weakened further at the start of the second quarter, as the conflict in the Middle East weighed heavily on confidence. Views on the labour market soured for the first time in almost three years, while all other measures signalled more acute drags on overall sentiment, underscoring a growing unease among households.

“Increased energy-market disruption raises the odds of further spikes in fuel and utility bills, with headwinds keeping near-term inflation stickier than policymakers would like. Against this backdrop, households’ rate expectations have turned more hawkish, with a growing share of households now anticipating a tightening of monetary policy by the Bank of England.

“The strain on finances and an uncertain central bank policy outlook is showing up in consumer behaviour as households bear down on spending, particularly on big-ticket items, while running down savings at the fastest pace in a year. Debt undertakings, too, edged higher with the need for loans growing to the greatest extent in over two-and-a-half years.”