UK consumer confidence took a sharp hit in September, falling to levels last seen in January, as anticipation of a "painful" autumn Budget dampened household morale. The GfK consumer confidence index dropped by 7 points, driven by fears of tax, spending, and welfare cuts, despite easing inflation and mortgage rates. Prime Minister Keir Starmer warned of tough financial decisions due to the UK’s fragile public finances. Economists worry that the government’s pessimistic messaging could harm economic growth, as consumers pull back on spending ahead of the Budget.