The economy might have been growing at a decent rate – at least until the war in Iran began – but households feel poorer which bodes badly for future consumer spending, new statistics reveal.

On Thursday, official figures showed the UK economy grew at 0.6 per cent in the first three months of this year.

But the fear is that political infighting in Westminster is affecting not just bond markets but consumer confidence.

St James’s Place annual Financial Health report finds that average UK household wealth fell 17.5 per cent to £104,329 in 2026, down from £126,482.

London has the highest household wealth at £171,455, Yorkshire and the Humber the lowest at £73,488.

Alexandra Loydon, group advice director at St.…