Consumer confidence drops amid cost of living concerns

The index found that overall consumer confidence for January fell to -19, with all other measures also down on December’s total.

There was an eight-point fall in people’s outlook of the general economic situation over the previous 12 months and the next 12 months, rated as -47 and -32 respectively.

People’s personal financial situation over the past year fell one point from the previous month to -6, while the outlook for personal finances for the year ahead entered into negative territory with a drop of three points to a score of -2.

The major purchase index, which measures people’s views on whether now is a good time to make a major purchase, declined four points to -10.

Despite this, the savings index climbed a point from December to a positive score of 15’ albeit the total score is three points weaker than at this point in 2021.

The results are based on a sample of 2,000 individuals aged 16 or over, with the survey conducted between 4th and 12th January.

Joe Staton, client strategy director at GfK, said: “Despite some good news about the easing of Covid-19 restrictions, consumers are clearly bracing themselves for surging inflation, rising fuel bills and the prospect of interest rate rises.

“Will the mood brighten when the latest wave of the pandemic subsides and Covid-19 numbers improve? It seems unlikely because it’s the cost-of-living squeeze that’s worrying us now and this will affect us for months to come.”