GfK’s long-running Consumer Confidence Index was down 11 points to -24 in October. All measures decreased compared to last month’s announcement – the Major Purchase Index fell 14 points to -22 in October, down 10 points YoY.
Neil Bellamy, consumer insights director at GfK, an NIQ Company, says: “There has been an extraordinary collapse in consumer confidence in October, down 11 points to -24.
"The last time we saw an 11-point drop was in July 2016, following the Brexit vote. In recent years, only the onset of the Covid pandemic saw a larger fall (down 25 points).
"While all measures are lower, the two largest decreases are in expectations for the wider UK economy in the coming year and the intention to make major purchases, both slumping by 14 points.
"With no single major economic event driving the decline, and with weakness seen across the full spectrum of income, age and gender demographic groups, these are damaging findings given the UK Government’s priority of economic growth. The measures on personal finances looking back 12 months and ahead a year are also down, by seven and eight points respectively.
"Relentless cost of living pressures, against an international backdrop of unresolved regional conflicts that are themselves contributing to domestic inflation now at 3.5%, appear to have swept aside the nascent optimism we saw following the appointment of a new UK prime minister this summer. Headline consumer confidence is now back to the level seen in April, May and June of this year and the summer’s buoyant mood has evaporated. The speed of this deterioration is alarming.”
