UK Consumer Confidence Sees Big Fall In September - Down Seven Points

21st September 2024

Key future indicators on personal finances, economy and purchase intentions all sharply lower.

Consumer confidence has fallen sharply after Labour stripped winter fuel payments from millions of pensioners and warned of painful measures in next month's Budget.

A closely-watched survey from market research firm GfK showed its headline measure of confidence fell to a six-month low in September.

GfK's long-running Consumer Confidence Index fell sharply to -20 in September. All measures were down in comparison to last month's announcement.

Neil Bellamy, Consumer Insights Director, GfK, says: "Headline consumer confidence has recorded a big fall this month to -20, taking us back to a similar level seen at the beginning of this year. All five measures are down but there are major corrections in the outlook for our personal financial situation for the next 12 months (down nine points), our views on the general economy for the coming year (down 12 points), and the major purchase index (down ten points).

These three measures are key forward-looking indicators so, despite stable inflation and the prospect of further cuts in the base interest rate, this is not encouraging news for the UK's new government.

Strong consumer confidence matters because it underpins economic growth and is a significant driver of shoppers' willingness to spend. Following the withdrawal of the winter fuel payments, and clear warnings of further difficult decisions to come on tax, spending and welfare, consumers are nervously awaiting the Budget decisions on 30th October."

For more details from GfK go to
https://www.gfk.com/press/uk-consumer-confidence-sees-big-fall-in-september-down-seven-points