Consumer self-confidence has truly dropped tremendously in “not encouraging news” for the Government as homes “nervously” look ahead to following month’s fall Budget, in line with a long-running examine.
GfK’s Consumer Confidence Index dropped 7 components in September to minus 20, with appreciable lower in forecasts for particular person funds and the essential financial local weather over the approaching 12 months.
Expectations for the essential financial local weather over the next 12 months dropped by 12 point out minus 27, whereas the projection for particular person funds is down 9 point out minus 3.
The vital acquisition index, a sign of self-confidence in buying giant ticket issues, is down 10 components on final month to minus 23, 5 components greater than a 12 months earlier.
GfK said: “These three measures are key forward-looking indicators so despite stable inflation and the prospect of further cuts in the base interest rate, this is not encouraging news for the UK’s new Government.”
Neil Bellamy, buyer understandings supervisor at GfK, said: “Strong shopper confidence issues as a result of it underpins financial progress and is a big driver of buyers’ willingness to spend.
“Following the withdrawal of the winter fuel payments, and clear warnings of further difficult decisions to come on tax, spending and welfare, consumers are nervously awaiting the Budget decisions on October 30.”
