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Economy

Consumer confidence drops further in October

Gfk’s long-running Consumer Confidence Index decreased two points to -14 in October.

The measure for the general economic situation of the country during the last 12 months decreased by one point during month to -33, five points lower than in October 2018.

Expectations for the general economic situation over the next 12 months have also decreased two points to -37.

Additionally, the major purchase index decreased two points in October to +1, this is three points lower than in October 2018.

Joe Staton, client strategy director at GfK, said the “ongoing machinations” in Westminster appear to be impacting how the public views the personal financial situation for the coming year, with a notable fall of -3 in this measure in October.

He added: “This deterioration in sentiment regarding our personal financial affairs is worrying as strong consumer spending has been the main driver of economic growth since the Referendum in 2016 against a backdrop of low inflation, low interest rates, low wage growth and high employment.

“Does reduced confidence in personal finances for the year ahead pose a risk to the wider economy? Nobody wants to see consumer spending reduce and let’s hope it doesn’t happen. But Brexit’s continuing uncertainty and the spectre of a general election is not helpful.”

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