The latest Consumer Confidence Index from GfK reveals a decline, taking the confidence level back to figures last seen in March.
- Consumer expectations for personal finances have slightly improved, showing a rise of one point over the next 12 months.
- The past year has seen a small decline in personal financial situation, yet significantly better than a year ago.
- A notable fall in sentiment regarding the country’s economic situation marks a cautious outlook.
- Despite some negative indicators, the major purchase index reflects a slight rise.
GfK’s Consumer Confidence Index dropped by one point to -21 in October, a level previously seen in March. This decline indicates a cautious sentiment among consumers as the upcoming Budget statement approaches.
There is a marginal improvement in consumer expectations regarding personal finances over the next year, increasing by one point to -1, which marks a six-point improvement from the same period last year. Neil Bellamy, consumer insights director at GfK, highlights this as a slight positive amidst the overall decline in confidence.
Consumers have experienced a minor decrease in their personal financial situation over the past year, with the index falling one point to -10. Despite this drop, figures are still nine points above those recorded in October 2023, suggesting a resilience compared to the previous year.
The general sentiment concerning the country’s economic situation over the past year has notably decreased by five points to -42. However, this figure is 12 points higher than what was recorded in June 2022, indicating some long-term recovery despite recent setbacks.
Expectations for the general economic situation in the coming year also declined by one point to -28, yet this too is an improvement of four points compared to the previous year, signaling cautious optimism.
Interestingly, the major purchase index, which reflects consumer intentions for significant expenditures, rose by two points to -21. This is 13 points higher than the same period last year, possibly hinting at continued consumer spending despite broader economic concerns.
As the Budget announcement looms, consumer confidence remains shaky with mixed indicators reflecting both concern and resilience.
