UK's consumer confidence slips ahead of November budget

The CCB has been published jointly by GfK and the Nuremberg Institute for Market Decisions (NIM), the founder of GfK, since October 2023.

“There’s an autumnal chill in the air this month, with all five measures of consumer confidence down and the Overall Index Score for September slipping two points from -17 to -19. The August 7^th decrease in interest rates does not appear to have provided any obvious boost to the financial mood of consumers or drawn attention away from day-to-day cost issues,” Neil Bellamy, consumer insights director at GfK, an NIQ Company, said.

“Both personal finance measures – past and future – are lower, while our major purchases measure has dropped three points to -16. Even more striking is an eight-point fall in saving intentions. Looking at the economy, sentiment is sliding sharply: in June 2024 our forward-looking measure stood at -11, but just 15 months later it has slumped to -32. Perceptions of the past year remain weak too, down three from last month to -45. With tax rises expected in the November budget, the risk is that confidence inevitably falls, just like the autumn leaves,” explained Bellamy.

The Overall Index Score fell two points to -19 in September, with declines across all measures. Personal finance sentiment dropped slightly, though still improved year-on-year. Views on the general economic situation worsened both short- and long-term compared to 2024. The Major Purchase Index fell three points but remains higher than last year. The Savings Index also declined by eight points to +22, just below September 2024 levels.

ALCHEMPro News Desk (RR)