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Acute concerns amid the soaring cost of living and bleak economic prospects saw GfK’s long-running Consumer Confidence Index fall by three points to -44 in August, the lowest since records began in 1974.
It is reported that all five measures of the index were down in comparison to the 22 July announcement.
The index has been measuring changes in personal finances over the last 12 months. Worryingly, it shows a fall of two points to -25, which is reportedly 25 points worse than August 2021.
In addition, the forecast for personal finances over the next 12 months has decreased five points to -31, which is 42 points lower than this time last year.
The measure for the general economic situation of the country during the last 12 months is down two points at -68, a decrease of 26 points than in August 2021.
Furthermore, GfK expects that the general economic situation over the coming 12 months will deteriorate with a three-point drop to -60, which would be 54 points lower than August 2021.
Joe Staton, client strategy director at GfK, said: “The Overall Index Score dropped three points in August to -44, the lowest since records began in 1974. All measures fell, reflecting acute concerns as the cost-of-living soars. A sense of exasperation about the UK’s economy is the biggest driver of these findings.
“Our sub-measure on the general economy over the past year has decreased month-on-month since December 2021. That’s eight months in a row. A similar consistent sharp decline since December 2021 is evident in how consumers see the economy a year ahead and this month’s score of -60 sets a new record.”
He added: “These findings point to a sense of capitulation, of financial events moving far beyond the control of ordinary people. With headline after headline revealing record inflation eroding household buying power, the strain on the personal finances of many in the UK is alarming.
“Just making ends meet has become a nightmare and the crisis of confidence will only worsen with the darkening days of autumn and the colder months of winter.”
