Consumer confidence falls by nine points in October

Of all the five areas it measures, by far and away the one that has seen the steepest decline is that of the major purchase index – which plummeted by 14 points to -34 – although this is seven points higher than during the same month last year. In addition to this, its savings index fell by two points to 25 – however this is also still 12 points higher than this time last year.  

People’s personal financial situation, meanwhile, fell by six points – with confidence in the UK’s general economic situation dropping by seven points to -54.   

Reflecting on the overall fall, Joe Staton – GfK client strategy director – said: “This sharp fall underlines that the cost-of-living crisis, and simply not having enough money to make-ends-meet, are still exerting acute pressure for many consumers.  

“The fierce headwinds of meeting the accelerating costs of heating our homes, filling our petrol tanks, coping with surging mortgage and rental rates, a slowing jobs market and now the uncertainties posed by conflict in the Middle East, are all contributing to this growing unease.

“The timing of the sharp drop in our major purchase measure – down 14 points – will concern retailers across the land in the run-up to Christmas. The volatility we are seeing in consumer confidence is a sure sign of a depressed economic mood and there’s no immediate prospect of any improvement.”