Brits thinking twice for shopping as consumer confidence falls: Report

GFK, a company based in Nuremberg, Germany which provides data and analytics to the consumer goods industry, has forecast further falls in the index for the year ahead.

The measure for the general economic situation of the country during the last 12 months is down nine points at minus 60—two points lower than in April 2021. Expectations for the general economic situation over the coming 12 months have dropped by six points to minus 55; this is 44 points lower than April 2021.

The index measuring changes in personal finances over the last 12 months has decreased six points to minus 19—16 points worse than April 2021.

The forecast for personal finances over the next 12 months has decreased eight points to minus 26—36 points lower than this time last year.

The major purchase index decreased by eight points to minus 32 in March—20 points lower than this month last year. The savings index has gone down by eight points to plus 10 in April—12 points lower than this time last year.

“The cost crunch is really hitting the pockets of UK consumers and the headline confidence score has dropped to a near historic low….When rising inflation and interest rates meet low growth and declining incomes, consumers will understandably be extremely cautious about any spending. There’s clear evidence that Brits are thinking twice about shopping…. This is dire news for consumer confidence and with little prospect of any economic relief on the horizon we can only forecast further falls in the index for the year ahead.” GfK director for client strategy Joe Staton said in a statement.

ALCHEMPro News Desk (DS)