GfK’s long-running Consumer Confidence Index decreased four points to -17 in October. All measures were down in comparison to the September 24th announcement – the Major Purchase Index decreased by four points to -10, leaving it 17 points higher YoY.
Joe Staton, client strategy director at GfK, says: “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. The sharpest concern is how consumers see the future economy, with this collapsing 10 points this month just as it did in September. 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.”