18 July 2024, 08:08
By Furniture News Sept 23, 2022

Consumer confidence reaches new low

GfK’s Consumer Confidence Index decreased five points in September to -49, setting yet another record low.

Four measures were down in comparison to the August 19th announcement, and one was flat – the Major Purchase Index, which was unchanged at -38 (down 32 points YoY).

Joe Staton, client strategy director, GfK, says: “UK Consumer Confidence tumbled in September to a new low of -49, the worst overall index score since records began in 1974. There have been new lows in four out of the last five months and all measures are once again severely depressed. Especially worrying are the two key future-facing indicators on personal finances in the coming year (down nine points to -40) and the economy in the next 12 months (down eight to -68). These numbers are where many forecasters look for signs of economic optimism among consumers and the results deliver very bad news in that respect.

"Consumers are buckling under the pressure of the UK’s growing cost of living crisis, driven by rapidly rising food prices, domestic fuel bills and mortgage payments. They are asking themselves when and how the situation will improve. Today’s mini-budget, and the longer-term agenda to drive the economy and help rebalance household finances, will be the first major opportunity to deliver that improvement. It will also be a major test for the popularity of Liz Truss’s new Government.”

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