Consumer confidence drops for third consecutive month

Consumer confidence
The measure for the general economic situation of the country during the last year is down three points

New research has found that consumer confidence in the UK has taken a turn for the worse after dropping four points to -17 this month.

GfK’s Consumer Confidence Index found that all measures were down in comparison to the release on September 24.

Confidence over personal finances in the last year has dropped one point to -5; which is four points better than in October last year.

READ MORE: Retail footfall improves in September

The measure for the general economic situation of the country during the last year is down three points at -46; this is 21 points higher than in October last year.

Expectations for the general economic situation over the coming 12 months have fallen by ten points to -26; but this is still 24 points higher than last year.

“After six-months of robust recovery in the first half of 2021, UK consumer confidence has taken a turn for the worse with all vital signs weakening,” GfK client strategy director, Joe Staton said.

“For two consecutive months five sub-measures have decreased and the headline score has dropped three months in a row.

“The sharpest concern is how consumers see the future economy with this collapsing ten points this month just as it did in September.

“Against a backdrop of cheerless domestic news – fuel and food shortages, surging inflation squeezing household budgets, the likelihood of interest rate rises impacting the cost of borrowing, and climbing Covid rates – it is not surprising that consumers are feeling down-in-the mouth about the chilly winter months ahead.

“Worryingly for British retailing in the run-up to Christmas, there’s a further decline in the intention to make major purchases.

“The financial mood of the nation has changed and consumers could do with some strong tonic to lift their spirits.”

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