LONDON—British consumer morale has fallen to its lowest since February, when the country was under heavy COVID-19 restrictions, due to worries about the economic outlook and about rising prices, a Bank of America report showed on Friday. The survey chimed with other gauges of consumer confidence in Britain that have suggested a growing cost-of-living squeeze has started to drag on the economy’s recovery from the COVID-19 pandemic. The readings follow disarray in Britain in recent days as a shortage of truckers left fuel pumps dry across much of the country and a spike in European wholesale natural gas prices raised the prospect of a surge in utility bills. “Our proprietary UK consumer confidence indicator continued to drop over the past two weeks, reaching the lowest since February on our 7-day moving average,” Bank of America economist Robert Wood said in a note to clients. The survey showed inflation expectations rose …