YES- it's really BAD
Recreational flying is discretionary (spending).
The credit, inflation and loss of confidence 'concerns' are all making people cut-back (or simply be more cautious or conservative) in spending, in order to conserve or save cash, for essentials (or a 'rainy day').
Demand will decline and plenty of clubs and other businesses who serve this aviation market will close. Underlying this is the cost of fuel for aviation and other purposes (e.g. driving to airfield !)- the main cost of which is, still, tax.
BTW, I don't understand 'fuel surcharges' because they offer to supply fuel at £x.yzPence per litre and you decide whether or not buy any. If you are on wet hire, the hourly rate includes fuel so any surcharges are a 'con'. If you are a member, of a genuine club, make a written complaint to the Secretary.