Consumer confidence sinks to record low in August
Consumer confidence has taken a dive this month following a surge in people’s concerns about the cost of living crisis.
According to the latest figures from GfK’s long running Consumer Confidence Index, the overall index score has declined by three points in August to a record -44.
Joe Staton, client strategy director at GfK, said: “The overall index score dropped three points in August to -44, the lowest since records began in 1974. All measures fell, reflecting acute concerns as the cost-of-living soars. A sense of exasperation about the UK’s economy is the biggest driver of these findings.”
While the forecast for personal finances over the next 12 months has decreased by five points to -31, the index measuring expectations for the general economic situation over the same period has deteriorated with a three-point drop to -60.
In further bad news for retailers, the major purchase index has decreased by four points to -38; this is 35 points lower than at the same time last year.
Staton added: “These findings point to a sense of capitulation, of financial events moving far beyond the control of ordinary people. With headline after headline revealing record inflation eroding household buying power, the strain on the personal finances of many in the UK is alarming. Just making ends meet has become a nightmare and the crisis of confidence will only worsen with the darkening days of autumn and the colder months of winter.”
