NEWS23 October 2020

UK consumer confidence down in October

Covid-19 FMCG News Retail Trends UK

UK – GfK’s monthly Consumer Confidence Index decreased by six points this month, with all measures down.

Confidence gloomy rainy london_crop

The overall index score is -31, compared with September’s level of -25 and -14 in October 2019.

Participants’ views of their personal finances during the last 12 months had worsened, with this index down two points to -9, while the forecast for the year ahead decreased by a point to 0.

Expectations for the country’s general economic situation over the next 12 months are also depressed, dropping by 12 points in October. The measure for the economic situation during the last year decreased by six points.

The major purchase index, which tracks whether people feel it is a good time to be spending money on more expensive items such as furniture, also dropped by six points to -27.

All measures are lower than they were during the same period last year.

Consumer confidence fell to -34 in late March and was tracking at one of the lowest levels recorded (-36 ) in May, according to a Gfk interim flash report, before improving and then stagnating during summer.

Joe Staton, client strategy director, GfK, said: "There’s a worrying threat of a double-dip in consumer confidence as concerns for our personal financial situation and even deeper fears over the state of the UK economy drag the Index down six points this month.

"Despite low inflation and rock-bottom interest rates, a buoyant housing market and a raft of government financial stimulus measures, the prospect of rising unemployment is severely depressing our outlook."

The most recent data was collected between 1st and 14th October, before the introduction of the new tiered restrictions and the end of the furlough scheme, Staton added. "This will negatively impact the Index in the run-up to Christmas and the months beyond."

The UK Consumer Confidence Barometer is conducted by GfK on behalf of the EU. October’s survey was conducted among a sample of 2,000 individuals on behalf of the European Commission.