UK – Consumer confidence fell five points from August to September to a new record low of -49 amid a cost of living crisis and high inflation, according to the Consumer Confidence Index by GfK.
GfK found that there was a nine point drop from the previous month in people’s predictions for their personal finances over the coming year, reaching -40 and 45 points lower than in September 2021.
There was a three point drop from August in respondents’ opinion of the performance of their finances over the previous 12 months to -28 for September, down 24 points from the same month last year.
The findings are based on a survey of 2,000 adults between September 1 and September 14, 2022, and covering a period that included the government’s announcement of an energy bill bailout and the death of Queen Elizabeth II. GfK has been leading the survey since 1974.
The latest survey indicates that confidence in the general economic situation of the country over the past 12 months is down four points to -72 for September 2022, 29 points lower than in September 2021.
There was also a deterioration in expectations for the general economic situation over the next 12 months, registering an eight point drop to -68. This is 52 points less than in September 2021.
The major purchases index, which measures whether the time is right for a major purchase, was unchanged this month at -38, but 32 points lower than this month last year.
The savings index, which indicates whether the time is right to save, fell seven points in September but remains in positive territory at +11, although 11 points lower than in September 2021.
Joe Staton, director of client strategy at GfK, said: “There have been new lows in four of the past five months and all metrics are again severely depressed.
“The two leading forward-looking indicators for personal finances over the year ahead (down nine points to -40) and the economy over the next 12 months (down eight to -68) are of particular concern. These numbers are where many forecasters look for signs of economic optimism among consumers and the results deliver some very bad news in this regard.
“Consumers are caving in under the pressure of the UK’s growing cost of living crisis, driven by rapidly rising food prices, household fuel bills and mortgage payments. They wonder when and how the situation will improve.