UK consumer confidence has experienced a slight decline, as indicated by the latest GfK survey, which shows a 1-point decrease to minus-21 in October. This decline raises concerns about the possibility of a "vibecession," similar to trends observed in the US, being caused by anxieties surrounding Labour's upcoming budget.

Although there is a more positive outlook on personal finances, households are increasingly pessimistic about the overall economic situation. The decline in consumer sentiment follows a significant drop in the previous month’s survey, as speculation grows regarding the tax and spending strategies of Chancellor of the Exchequer Rachel Reeves.

As the government prepares for its first budget under Labour, the implications of these consumer confidence trends could have far-reaching effects on economic policy and market stability.