UK consumer confidence plunges 

The UK Consumer Confidence Barometer from researcher GfK fell nine points in October and all five component measures were down in comparison to last month’s announcement.

Why it matters

Brits are more optimistic than they were this time last year when energy costs and inflation were rocketing, but these things are relative. The pressures may have abated to an extent but they certainly haven’t gone away and they remain all too real for many people as we head into the winter months. It doesn’t bode well for the Christmas trading period.

Component measures

• Personal finances last 12 months: down six points at -19 ( nine points better than October 2022). 
• Personal finances next 12 months: down six points to -8 (26 points higher than this time last year)
• Country’s general economic situation last 12 months: down seven points at -54 (15 points higher than in October 2022)
• Country’s general economic situation next 12 months: down eight points to -32 (29 points better than October 2022).
• Major Purchase Index: down 14 points to -34(seven points higher than October 2022).

Key quote

“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” – Joe Staton, Client Strategy Director, GfK.

Sourced from GfK