People holding ‘their breath’ to see what’s in store for them in Rachel Reeves’s first budget, reports GfK

• Budget will reverse huge cuts in UK’s public investment, Reeves confirms

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

UK consumers are in a “despondent mood” ahead as households brace for tax rises in the Budget next week, amid fears that Britain could be entering a “vibecession”.

“Consumer confidence fell one point this month to -21, taking the score back down to the level last seen in March this year. Also falling one point are both personal financial situation over the last 12 months and general economic situation over the next 12 months.

The largest drop though was in our view of the general economic situation over the last 12 months, down five points to -42. On the plus side, the major purchase index rose two points and future personal financial expectations by one point. As the Budget statement looms, consumers are in a despondent mood despite a fall in the headline rate of inflation. This month’s Consumer Confidence Barometer paints a picture of people holding their breath to see what’s in store for them on 30th October.”