GfK’s long-running Consumer Confidence Index fell sharply to -20 in September, with key future indicators on personal finances, economy and purchase intentions all sharply lower.
All measures were down in comparison to last month’s announcement, the major purchase index dropping 10 points to -23, just five points higher than this month last year.
Neil Bellamy, consumer insights director, GfK, says: “Headline consumer confidence has recorded a big fall this month to -20, taking us back to a similar level seen at the beginning of this year.
"All five measures are down but there are major corrections in the outlook for our personal financial situation for the next 12 months (down nine points), our views on the general economy for the coming year (down 12 points), and the major purchase index (down 10 points). 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. Following the withdrawal of the winter fuel payments, and clear warnings of further difficult decisions to come on tax, spending and welfare, consumers are nervously awaiting the Budget decisions on 30th October.”
