British consumer sentiment sunk in November as the public braced itself for difficult news in next week’s Budget.
All five measures of GfK’s consumer confidence index — a measure of how people view their personal finances and broader economic situation — declined through the month as the overall index fell two points to -19.
“This is a bleak set of results as we head towards next week’s Budget,” said Neil Bellamy, consumer insights director at GfK.
“A fall across all five measures suggests the public is bracing for difficult news, with little in the current climate to lift expectations.”
The index measuring personal finance changes over the last year fell by two points to -7, although this remains two points higher than November 2024.
The measure of the UK’s general economic situation declined by one point to -43, a four-point drop compared to last year.
The major purchase index fell three points to -15 which Bellamy called a “troubling” fall at this time of the year “suggesting households are tightening their grip just as retailers move into a crucial trading period.”
GfK’s survey echoed the British Retail Consortium’s consumer sentiment monitor published earlier this week which also found consumer confidence is down.
Brits’ expectations of the state of the economy for the next three months fell significantly to -44 in November, down from -35 in October.
“It has been a tumultuous month of Budget speculation and consumer confidence took a tumble,” said CEO Helen Dickinson.
“The Chancellor needs a few rabbits from the Budget hat next week to bolster weak consumer and business confidence – both essential for economic growth.”
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