Consumer self-confidence has actually dropped greatly in “not encouraging news” for the Government as houses “nervously” wait for following month’s fall Budget, according to a long-running study.
GfK’s Consumer Confidence Index dropped 7 factors in September to minus 20, with considerable decrease in forecasts for individual funds and the basic economic climate over the coming year.
Expectations for the basic economic climate over the following year dropped by 12 indicate minus 27, while the projection for individual funds is down 9 indicate minus 3.
The significant acquisition index, an indication of self-confidence in purchasing large ticket things, is down 10 factors on last month to minus 23, 5 factors more than a year earlier.
GfK stated: “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.”
Neil Bellamy, customer understandings supervisor at GfK, stated: “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 October 30.”
