“Double dip” threat for consumer confidence as concerns about finances worsen

October's consumer confidence score is the first decline after several months of slow recovery since the height of lockdown in April. (Image: Dominic Lipinski/PA Wires)
// Overall consumer confidence declines to -31 in October, compared to -25 in September
// There are concerns about personal finances & the wider economy worsening amid the second wave

Consumer confidence is heading for a double dip as concerns about personal finances and the wider economy in the coming months deepen amid the second wave of Covid-19.

According to the latest consumer confidence index compiled by GfK, perceptions about personal finances both in the past year and the 12 months ahead deteriorated in October.

Attitudes towards the general economic situation over the past and coming 12 months also worsened.

READ MORE: Consumer confidence edges up in September despite second wave

Overall, UK consumer confidence in October deteriorated to a score of -31, down from -25 in September.

October’s consumer confidence score is also the first decline after several months of slow recovery since the height of lockdown in April.

“There’s a worrying threat of a double dip in consumer confidence as concerns for our personal financial situation and even deeper fears over the state of the UK economy drag the index down six points this month,” GfK client strategy director Joe Staton said.

“Despite low inflation and rock-bottom interest rates, a buoyant housing market and a raft of government financial stimulus measures, the prospect of rising unemployment is severely depressing our outlook.”

He said the findings were collected before the latest round of Covid-19 restrictions came into force.

“Expect the autumn chill to give way to much stormier conditions,” he said.

Some 2000 people were surveyed.

with PA Wires

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