Consumer confidence at another record low

The record low was three points lower than the past two months, both of which were record scores, and was a considerable deterioration from the -8 registered in August 2021.

Respondents to the index rated their personal financial situation over the past 12 months at -25, two points down from July, and personal financial situation for the year ahead fell five points to -31.

The general economic situation over the previous year and the next 12 months was rated at -68 and -60 respectively, a fall of two and three points from July.

The results are based on a nationally representative survey of a sample of 2,000 adults carried out between 1st August and 12th August 2022. A negative score represents poor consumer confidence.

The major purchase index, which measures whether now is a good time to make a major purchase, was four points lower at -38.

However, there was a five-point increase in the savings index to a positive score of 18.

Joe Staton, client strategy director at GfK, said: “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.”