// Consumer confidence has dropped to levels seen when the economy was emerging from lockdown
// The GfK consumer confidence index fell five points in September to -13
New research has shown that rising prices and shop shortages have knocked consumer confidence back to levels previously seen when the economy was emerging from lockdown.
The GfK consumer confidence index fell five points in September to -13, reversing the gains since restrictions began to be eased in April, when it stood at -15.
Confidence had rallied sharply in the recovery this year, but weak economic data after the “pingdemic” in July and rising prices have caused a setback.
All measures in the GfK index fell, but the steepest declines in confidence were in the general economic situation over the next 12 months, which dropped by ten points to -16, and in households’ confidence in their personal financial situation over the next year, which slipped six points to +5.
“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,” GfK client strategy director, Joe Staton said.
The survey was conducted between September 1 and September 14.