Consumer confidence falls back in September
New data has revealed that consumer confidence has fallen back in September as people worry about a potential cost of living crisis.
According to GfK’s long-running Consumer Confidence Index, it decreased by five points to -13 in the month, with all measures down compared to August.
Joe Staton, client strategy director at GfK, said: “On the back of concerns about rising prices for fuel and food, the growth in headline inflation, tax hikes, empty shelves and the end of the furlough scheme, September sees consumers slamming on the brakes as those already in economic hardship anticipate a potential cost of living crisis. All measures have declined this month and consumers are clearly worrying about their personal financial situation and the wider economic prospects for the year ahead.“
The index measuring the forecast for people’s personal finances over the next 12 months has decreased by six points to 5 while the measure for expectations for the general economic situation over the same period has fallen by ten points to -16. However, this is still 22 points higher than September 2020.
Meanwhile, GfK’s major purchase index has decreased by three points to -6 in the month.
Staton added: “The index also records a fall in the major purchase index, depressing news for hard-pressed retailers looking to build sales as they go into the key holiday period. When consumer confidence drops, shoppers tend to spend less, and this dampens the overall economic prospects for the UK. This really is an unwelcome picture going into 2022 and beyond.”
Photo by Georgia Hawkins
