Consumer confidence dropped this month with worries of further declines to come when Chancellor Rachel Reeves reveals the contents of her despatch box in November for the autumn budget.
The long-running GfK consumer confidence index fell by two points to –19 in September, with measures across personal finances, the general economic situation and major purchase intentions all down.
It comes as official food inflation hit its highest levels since January 2024 this week and the FDF warned the figure would hit 6% by Christmas. The BRC also reported another month of falling consumer confidence yesterday as the country braced for more tax increases in November.
“There’s an autumnal chill in the air this month, with all five measures of consumer confidence down,” said Neil Bellamy, consumer insights director at GfK.
“The 7 August 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.
“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 was also sliding sharply,” Bellamy added.
“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.”
No comments yet