Consumer confidence tumbles this month
New figures have shown that consumer confidence tumbled this month as the continuing impact of Covid-19 led more people to worry about their personal finances, rising unemployment and the forecast for the UK economy.
GfK’s long-running Consumer Confidence Index dropped by six points to -31.
Joe Staton, client strategy director at GfK, said: “There’s a worrying threat of a double-dip in consumer confidence as concerns for our personal financial situation and even deeper fears over the state of the UK economy drag the Index down six points this month. Despite low inflation and rock-bottom interest rates, a buoyant housing market and a raft of Government financial stimulus measures, the prospect of rising unemployment is severely depressing our outlook.”
GfK’s major purchase index decreased by six points to -27 in the month while the index measuring people’s expectations for their personal finances in the next 12 months declined by one point to 0. Meanwhile, the index for expectations for the general economic situation over the next 12 months dropped by twelve points to -50.
Staton added: “Worryingly, this data was collected before the new round of Covid-19 restrictions came into force and the end of the furlough scheme, so this will negatively impact the Index in the run-up to Christmas and the months beyond. Expect the autumn chill to give way to much stormier conditions.”
Photo by Georgia Hawkins
