Consumer confidence tumbles despite uplift in retail sales
There has been a sharp fall in consumer confidence in the UK this month as people feel less optimistic about their personal finances, the economy and making major purchases.
GfK’s long-running UK Consumer Confidence has dropped by seven points to -20 after warnings of “tough choices” ahead of the budget this autumn.
The decline means that consumer confidence is now back to a similar level seen at the beginning of this year.
GfK’s measure for people’s expectations for the general economic situation over the next 12 months is down 12 points at -27 while its major purchase index has fallen by ten points to -23.
Meanwhile. the forecast for personal finances over the same period has dropped by nine points to -3.
Neil Bellamy, consumer insights director, GfK, said: “These three measures are key forward-looking indicators so, despite stable inflation and the prospect of further cuts in the base interest rate, this is not encouraging news for the UK’s new government.
“Strong consumer confidence matters because it underpins economic growth and is a significant driver of shoppers’ willingness to spend.”
The news came as the Office for National Statistics published its latest retail sales figures which show there was a 1% increase in retail sales volumes for August as supermarkets and clothing stores benefited from the month’s warmer weather.
