Why did investor confidence fall in October 2026? Index drops to 42 as most investors sit tight
Written by Boring Money
4 Nov, 2026
The Boring Money Investor Confidence Index fell to 42 in October, down five points in a month. Higher earners saw the sharpest drop, as rising inflation, a wobbly month for US tech and the run-up to the Budget weighed on sentiment. The post-Budget reaction has also been unfavourable: 82% of Boring Money readers oppose the rise in tax on savings.
How much did investor confidence fall in October 2026?
The index dropped from 46.5 in September to 41.9 in October. That is its lowest reading since April 2026 (41.1).
Confidence fell on every measure we track: personal finances, the UK economy, the global outlook and the value of the UK stock market. The biggest fall was in confidence about the UK economy, down from -28 to -40.
The backdrop was not kind. The An index that tracks the performance of the 500 largest publicly traded companies in the United States. It's often used as a benchmark for the overall global stock market. fell 1.7% over the month, as tech stocks had a poor October. UK Term used to describe how quickly the prices of goods and services is rising over a period of time. In periods of high inflation, prices are increasing rapidly, whereas low inflation means prices are increasing by only a small amount. has crept up from 2.9% in July to 3.1% in August and 3.5% in September. And Budget speculation dominated the headlines.
Are investors selling?
Falling confidence has not turned into a rush for the exit. Just under a quarter (23%) of fund investors changed their investments in October, in line with recent months. Most (63%) made no changes at all.
Among those who did act, putting more money in was still the most common move (44%, up from 40% in September). More also added to commodities such as oil and gold (22%, up from 17%).
Of those who made changes... | September | October |
Increased the amount invested | 40% | 44% |
Increased diversification | 34% | 26% |
Increased exposure to commodities (e.g. oil, gold) | 17% | 22% |
Of those who made changes... | September | October |
Increased the amount invested | 40% | 44% |
Increased diversification | 34% | 26% |
Increased exposure to commodities (e.g. oil, gold) | 17% | 22% |
How did Boring Money readers react to the Autumn Budget 2026?
We also asked Boring Money readers what they made of the Budget. Half (50%) say it has made them feel more negative about their own finances over the next 12 months. Only 8% feel more positive.
The rise in tax on savings interest was by far the least popular measure. More than 8 in 10 readers (82%) disagreed with it and just 5% agreed. The anger came from people who don't see themselves as wealthy, many of whom have already used their ISA allowance or live on their interest.
The extra 2% on cash savings, that's mean for small savers who have maxxed their ISA allowance.
The extra tax on savings as that is currently my main income.
The measures readers liked were the ones that left things alone.
Budget measure | Agree | Disagree |
Keep the Cash ISA limit at £20k | 78% | 8% |
No rise in Income Tax, NI or VAT | 68% | 17% |
Pension tax-free lump sum unchanged | 65% | 6% |
CGT rates unchanged | 60% | 12% |
Bank profits tax doubled | 45% | 35% |
£100 energy payment (bands A to D) | 30% | 45% |
Lifetime ISA replaced by First Time Buyer ISA | 27% | 15% |
Savings interest tax up 2 percentage points | 5% | 82% |
Budget measure | Agree | Disagree |
Keep the Cash ISA limit at £20k | 78% | 8% |
No rise in Income Tax, NI or VAT | 68% | 17% |
Pension tax-free lump sum unchanged | 65% | 6% |
CGT rates unchanged | 60% | 12% |
Bank profits tax doubled | 45% | 35% |
£100 energy payment (bands A to D) | 30% | 45% |
Lifetime ISA replaced by First Time Buyer ISA | 27% | 15% |
Savings interest tax up 2 percentage points | 5% | 82% |
Most readers plan to do something about it. Only 18% say they won't change anything. Nearly 4 in 10 (39%) plan to pay more into an ISA or other investments, while 30% will cut back on spending.
Some plan to spend or give money away rather than leave it to be taxed. 17% plan to take money out of their pension, even though the tax-free lump sum was left alone, and 9% plan to bring forward a big purchase or gift. Landlords are feeling it too, with around 10 readers naming the rise in tax on rental income as the worst part of the Budget.
I have sold one buy-to-let this week and am selling another one in the new Financial Year in April 2027
I'm seriously considering moving abroad and I'm not particularly wealthy.
Will investor confidence stay low in November 2026?
Investor confidence fell in October as did expectations about the outlook for the S&P 500. It's notable how confidence has fallen amongst more wealthy consumers. Given the combined triggers of rising inflation, a poor month for tech stocks and the threat of the UK Budget, I'm not surprised that higher earners are feeling less confident about the outlook.
As readers digested the Budget, Boring Money reader reaction suggests the unexpected hike in tax on savings was the least popular measure, and this will obviously impact higher rate taxpayers more. If we see continued Describes the price movement of an investment or index. High volatility indicates frequent and significant price movement, whereas low volatility denotes less frequent or severe fluctuations in price. in markets I wouldn't be surprised to see investor confidence remain low in November, as all households feel the pressure from multiple sources.
