Consumer confidence edges up following retail sales rise in September
Consumer confidence has edged up in October as shoppers look ahead to next month’s Black Friday.
GfK’s Consumer Confidence Index has increased by two points to -17 with most measures up on September.
Neil Bellamy, consumer insights director at GfK, an NIQ Company, said: “Buying sentiment is up on last month, with a four-point rise in our Major Purchase Index, which tracks consumers’ intentions to buy big-ticket items such as electrical goods and furniture.
“This uptick is partly driven by major retailer sales events held earlier in the month. After several years of high inflation, savvy consumers have adapted their purchasing strategies to make the most of their money when discounts are most attractive.
Subscribe to TRB“Where possible, many now delay major purchases until one of these sales events — and the biggest of all is Black Friday, on November 28.
“Both consumers and UK retailers will be watching closely to see whether the Chancellor’s Budget, to be announced just two days before Black Friday, boosts or dampens spending during that crucial weekend.”
Looking at GfK’s measure for expectations for the general economic situation over the next 12 months, this has increased by two points to -30, marking a two-point decline on October 2024.
Meanwhile, the forecast for personal finances over the same period is down one point at +3; this is five points better than the same time last year.
The news comes as figures from the Office for National Statistics show that retail sales volumes rose by 0.5% in September. Computer and telecom retailers’ sales volumes grew strongly and there was also continued growth among non-store retailers where online jewellers reported strong demand for gold.
Between July and September, retail sales volumes increased by 0.9% as good weather boosted clothing sales.
