Consumer confidence takes turn for the worse in October
Consumer confidence has declined again in October as people worry about the outlook for the economy.
According to GfK’s long running Consumer Confidence Index, it has fallen by four points this month to -17 following a five point drop in September.
Joe Staton, client strategy director GfK, said: “After six-months of robust recovery in the first half of 2021, UK consumer confidence has taken a turn for the worse with all vital signs weakening. For two consecutive months five sub-measures have decreased and the headline score has dropped three months in a row.”
GfK’s figures show that the index measuring people’s expectations for the general economic situation over the coming 12 months has fallen by ten points to -26 while the the major purchase index has decreased by four points to -10.
In further bad news, the index measuring the forecast for personal finances over the next 12 months has dropped by four points to 1, which is only one point higher than this time last year.
Staton added: “Against a backdrop of cheerless domestic news – fuel and food shortages, surging inflation squeezing household budgets, the likelihood of interest rate rises impacting the cost of borrowing, and climbing Covid rates – it is not surprising that consumers are feeling down-in-the mouth about the chilly winter months ahead. Worryingly for British retailing in the run-up to Christmas, there’s a further decline in the intention to make major purchases. The financial mood of the nation has changed and consumers could do with some strong tonic to lift their spirits.”
