Consumer confidence records ‘sharp slide’ in expectations for general economy

Consumer confidence fell in September amid a sharp slide in expectations for the general economy, figures show.

GfK’s long-running Consumer Confidence Index dropped two points to minus 19 this month, with all measures down in comparison to last month.

Expectations for the general economy fell two points to minus 32, a sharp fall from the minus 11 recorded for the same measure 15 months ago.

The forecast for personal finances over the next 12 months is down one point to four – although this is seven points higher than this time last year.

The Major Purchase Index, a measure of confidence in buying big ticket items, is down three points to minus 16, seven points higher than last September.

Neil Bellamy, consumer insights director at GfK, said: “The August 7th decrease in interest rates does not appear to have provided any obvious boost to the financial mood of consumers or drawn attention away from day-to-day cost issues.

“Both personal finance measures – past and future – are lower, while our major purchases measure has dropped three points to minus 16.

“Even more striking is an eight-point fall in saving intentions.

“Looking at the economy, sentiment is sliding sharply: in June 2024 our forward-looking measure stood at minus 11, but just 15 months later it has slumped to minus 32.

“Perceptions of the past year remain weak too, down three from last month to minus 45.

“With tax rises expected in the November budget, the risk is that confidence inevitably falls, just like the autumn leaves.”