Sharp fall in UK consumer confidence in September

GfK said that consumer confidence hit -20 in September, down seven points from the previous month, with all measures down in comparison to August.

The index measuring changes in personal finances during the last year was down two points at -9, albeit nine points better than in September 2023.

The forecast for personal finances over the next 12 months was nine points below the previous month at -3, which is three points higher than the same time last year.

The measure for the general economic situation of the country during the last 12 months was down two points at -37, but 16 points higher than in September 2023.  

Expectations for the general economic situation over the next 12 months are down 12 points at -27, which is two points better than in September 2023.

The major purchase index, which looks at whether now is a good time to make a major purchase, is 10 points lower at -23, although this is five points higher than September last year.

The savings index decreased 10 points to a positive score of 23 – the same as September 2023.

The findings are based on a survey of 2,003 individuals aged 16 or above in the UK between 30^th August and 13^th September 2024.

Neil Bellamy, consumer insights director at GfK, said: “Headline consumer confidence has recorded a big fall this month to -20, taking us back to a similar level seen at the beginning of this year.

“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 30th October.”