The ongoing Middle Eastern war has led to consumers feeling less confident in the British, European, American and global economies.

According to a new poll conducted by Barclays between March 3 and 6, confidence in the British economy during these turbulent times sits at 23 per cent - down from 25 per cent between Feb 24-27 and 24 per cent in January.

A similar pattern is visible for economies in other parts of the world. In Europe, confidence in its economy is now at 26 per cent. But it was slightly higher (29 per cent) between February 24th and 27th, and in January, European economic confidence sat at 28 per cent.

Americans are also more worried about their country’s economic performance now that their government has joined forces with Israel to launch attacks on Iran. Confidence in the American economy is at 24 per cent as of early March, slightly lower than 26 per cent logged between Feb 24-27 and 28 per cent in January.

Globally, economic confidence among consumers has decreased from 25 per cent in January and 24 per cent between February 24-27 to just 22 per cent in early March.

Overall, these stats show that consumers started the year with economic woes, which improved in the weeks following the end of the Christmas period. But this progress has since eroded due to the war in the Middle East.

The situation in the Middle East and its impact on personal finances is seriously worrying consumers globally, with rising fuel costs (82 per cent), energy bills (81 per cent) and inflation (78 per cent) being their top concerns.

Other concerns include food prices (76 per cent), supply chain disruptions (70 per cent), economic slowdown (69 per cent), travel disruption (56 per cent) and household finances (59 per cent).

These worries have prompted 46 per cent of consumers to take a range of steps to improve their finances and lives amid carnage in the Middle East.

These include consuming less energy (16 per cent), spending less on non-essential items (13 per cent), creating an emergency savings fund (10 per cent), postponing big spending decisions (10 per cent) and rethinking planned travel plans.

Karen Johnson, head of retail at Barclays, commented: “February’s data highlights the careful balancing act shoppers face in navigating rising costs amidst global uncertainty.

“While we’re seeing a continued appetite to spend on categories such as entertainment and wellness – obtaining value for money and savvy spending will remain a strong focus in the months ahead.”

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