Consumer confidence saw a sharp drop in the past month.
GfK’s Consumer Confidence Index fell to -13 in September, down from -8 in August.
The figure for making a major purchase fell from -3 to -6: in July it had been 2.
The general economic situation over the next 12 months fell from -6 to -16.
‘On the back of concerns about rising prices for fuel and food, the growth in headline inflation, tax hikes, empty shelves and the end of the furlough scheme, September sees consumers slamming on the brakes as those already in economic hardship anticipate a potential cost of living crisis,’ says Joe Staton, Gfk client strategy director.
‘All measures have declined this month and consumers are clearly worrying about their personal financial situation and the wider economic prospects for the year ahead. The Index also records a fall in the major purchase index: depressing news for hard-pressed retailers looking to build sales as they go into the key holiday period.
‘When consumer confidence drops, shoppers tend to spend less, and this dampens the overall economic prospects for the UK. This really is an unwelcome picture if this continues into 2022 and beyond.’
