NEWS27 September 2019

Consumer confidence ‘treading water’

Brexit News Trends UK

UK – September saw consumer confidence in the UK rise two points – increasing across all measures – although it remains firmly in the negative at -12 according to GfK’s Consumer Confidence Index.

Crowds crop

The discrepancy between people’s confidence in their personal financial situation and that of the overall economy remains stark. The index for personal financial situation over the past 12 months rose three points to an overall score of +2 and increased for personal financial situation in the next 12 months it increased two points to reach a score of +4. Both are one point lower than these indexes for a year ago.

The measure for the general economic situation of the country during the past 12 months has increased two points this month to -32; this is four points lower than in September 2018. 

Expectations for the general economic situation over the next 12 months have increased three points to -35 – eight points lower than a year ago. 

The major purchase index increased two points in September to +3 (three points lower than in September 2018 ) while the savings index has increased two points this month to +23 ( 10 points higher than at this time last year).

Joe Staton, client strategy director at GfK, said: "More mixed signals this month as consumers continue to feel less than positive about the state of their personal finances and the general economy. Yes, all sub measures are higher, but they are anaemic in the case of our purchase intentions and how we view our wallets, while the results on the wider economy are still depressed.

"Since the Brexit referendum we have witnessed a long succession of negative Overall Index scores with the overall trend downwards. This month, British consumers appear to be treading water during this wait-and-see run-up to October 31st."