Personal finance fears cause record drop in consumer confidence | News
United Kingdom – Consumer confidence slumped five points from August to September to reach another record low of -49 amid the cost-of-living crisis and soaring inflation, according to the GfK Consumer Sentiment Index.
GfK found that there was a nine-point decrease from the previous month in people’s expectations of their personal finances over the next year, posting a 40- and 45-point decrease from September 2021.
There was a three-point drop from August in respondents’ opinions about the performance of their finances in the past 12 months to -28 for September, which is 24 points worse than in the same month last year.
The findings are based on a survey of 2,000 adults conducted between September 1 and 14, 2022, and covered a period that included the government’s announcement of an energy bailout and the death of Queen Elizabeth II. GfK has conducted the survey since 1974.
The latest survey stated that confidence in the country’s general economic situation during the past 12 months fell four points to -72 for September 2022, 29 points lower than September 2021.
There was also a deterioration in the outlook for the general economic situation over the next 12 months, recording a decline of eight points to -68. That’s 52 points lower than September 2021.
The Leading Buying Index, which measures whether now is the time for a big buy, was unchanged this month at -38, but 32 points lower than this month last year.
The savings index, which covers whether it’s a good time to save, fell seven points in September but remains in positive territory at +11, albeit 11 points lower than in September 2021.
Joe Staton, director of customer strategy at GfK, said: “There have been new lows in four of the past five months and all the procedures are once again severely stressful.
“Especially concerning are the two leading indicators facing the future about personal finance in the next year (down nine points to -40) and the economy in the next twelve months (down eight to -68). These numbers are where many forecasters look for Signs of economic optimism among consumers The results provide very bad news in this regard.
“Consumers are under pressure from the rising cost of living crisis in the UK driven by rapidly rising food prices, domestic fuel bills and mortgage payments. They are asking themselves when and how the situation will improve.”