UK consumer confidence has fallen to a three-year low as households face growing concerns over higher interest rates, mortgage costs and job security.
The S&P Global consumer sentiment index dropped to 42.7 in September, from 42.9 in August. More than half of 1,500 respondents expect borrowing costs to rise over the next year.
The average two-year fixed mortgage rate has reached 5.88%, potentially adding about £150 to monthly payments on a typical mortgage.
The downturn comes ahead of next month’s UK budget, with possible tax increases adding to uncertainty.
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