Consumer confidence tumbles in run-up to festive season
UK consumer confidence has fallen sharply in October as the cost-of-living crisis continues to have an impact on people’s spending power.
GfK’s Consumer Confidence Index has decreased by nine points to -30 this month with all key measures down compared to September.
Joe Staton, client strategy director at GfK, said: “This sharp fall underlines that the cost-of-living crisis, and simply not having enough money to make-ends-meet, are still exerting acute pressure for many consumers.
“The fierce headwinds of meeting the accelerating costs of heating our homes, filling our petrol tanks, coping with surging mortgage and rental rates, a slowing jobs market and now the uncertainties posed by conflict in the Middle East, are all contributing to this growing unease.”
While the measure for the forecast for personal finances over the next 12 months has decreased by six points to -8, the measure for expectations for the general economic situation for the same period has fallen by eight points to -32.
Meanwhile, GfK’s major purchase index has plunged by 14 points to -34. This compares to a four point increase last month.
Staton added: “The timing of the sharp drop in our major purchase measure – down 14 points – will concern retailers across the land in the run-up to Christmas. The volatility we are seeing in consumer confidence is a sure sign of a depressed economic mood and there’s no immediate prospect of any improvement.”
