UK consumer confidence falters ahead of Autumn Budget
Lastly, the savings index was up eight points to +22; this is one point lower than September 2024
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UK consumer confidence has dropped by two points to -19 in September ahead of the Autumn Budget, according to GfK’s latest long-running index.
The survey revealed that all five measures declined in comparison to last month’s announcement.
The index measuring changes in personal finances during the last year was down three points at -7, two points better than September 2024.
Meanwhile, the survey revealed that the forecast about personal finances was down one point at +4, which is seven points higher than this time last year.
The measure for the general economic situation of the country during the last 12 months was down three points at -45, eight points worse than September 2024.
Expectations for the general economic situation over the next 12 months were down one point at -32, five points worse than September 2024.
Additionally, the major purchase index decreased three points to -16; this is seven points higher than this time last year.
Lastly, the savings index was up eight points to +22; this is one point lower than September 2024.
Neil Bellamy, consumer insights director, GfK, said: “There’s an autumnal chill in the air this month, with all five measures of consumer confidence down and the overall index score for September slipping two points from -17 to -19. The 7 August decrease in interest rates does not appear to have provided any obvious boost to the financial mood of consumers or drawn attention away from day-to-day cost issues.
“Both personal finance measures – past and future – are lower, while our major purchases measure has dropped three points to -16. Even more striking is an eight-point fall in saving intentions. Looking at the economy, sentiment is sliding sharply: in June 2024 our forward-looking measure stood at -11, but just 15 months later it has slumped to -32.”
He added: “Perceptions of the past year remain weak too, down three from last month to -45. With tax rises expected in the November budget, the risk is that confidence inevitably falls, just like the autumn leaves.”
