NEWS22 October 2021

Further drop in UK consumer confidence

News Trends UK

UK – UK consumer confidence has fallen for the third successive month amid concerns over rising inflation and food and fuel shortages, according to GfK’s consumer confidence index.

Shopers on Regent's Street during Covid-19

The index found that overall consumer confidence was at -17 in October, representing an overall negative score and which was four points lower than September, although still significantly better than October 2020’s score of -31.

The fall in consumer confidence was led by a 10-point drop compared with September’s index in respondents’ confidence over the country’s economic performance over the next 12 months, which reached a total score of -26.

The findings are based on a survey of 2,000 adults carried out between 1st and 13th October.

Other results from GfK’s index showed that all measures were down on September, including a three-point fall in respondents’ perception of the performance of the economy over the past year, which reached a score of -46.

Respondents’ views of their personal finances over the past 12 months fell one point to a total score of -5, while their expectations for their personal finances over the next year fell five points from September to a score of one.

The major purchase index, which measures whether respondents feel the time is right to make a major purchase, fell four points to an overall score of -10.

The savings index, which asks respondents whether now is a good time to save money, stayed the same as September at a score of 22.

Joe Staton, client strategy director at GfK, said: “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-19 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.”