NEWS24 September 2021

Consumer confidence down in September

News Trends UK

UK – Consumer confidence has fallen five points with all measures down on August’s figures amid concerns about a potential cost of living crisis, according to GfK’s consumer confidence index.

Conceptual image of shopping, with blurred people, moving quickly to represent the FMCG sector

The index said that overall consumer confidence was at -13, and that respondents rated their confidence in the general economic situation over the past year as -43, down one point from August.

Expectations for the general economic situation fell 10 points to -16, albeit still 22 points higher than in September 2020.

The figures are based on a survey by GfK of 2,000 people aged 16 and over between 1st September and 14th September. Positive scores represent positive consumer confidence, while scores below zero represent negative consumer confidence.

The personal finances index for September was at -4 for respondents’ personal financial situations over the past 12 months, a four-point fall from August.

The forecast for personal finances over the past 12 months decreased six points from August, but had an overall positive score of five.

The savings index dropped three points to 22 in September, and the major purchase index – which measures whether now is the right time to make a significant outlay – decreased three points to -6.

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

“When consumer confidence drops, shoppers tend to spend less, and this dampens the overall economic prospects for the UK. This really is an unwelcome picture going into 2022 and beyond.”