Consumer confidence ‘bleak’ as public braces for Budget

Consumer confidence has fallen across all measures as the public braces for difficult news in next week’s Budget, figures show.

GfK’s long-running Consumer Confidence Index fell by two points to minus 19 in November, with all five measures from confidence in the general economy to spending expectations tumbling.

Neil Bellamy, consumer insights director at GfK, said: “This is a bleak set of results as we head towards next week’s Budget.

“A fall across all five measures suggests the public is bracing for difficult news, with little in the current climate to lift expectations.”

Forward-looking measures for confidence in both personal finances and the general economy both fell by two points – although the personal finances measure is an improvement of two points compared to this time last year.

However, at minus 32, expectations for the general economic situation over the next 12 months is now six points worse than last November.

Gfk said a three-point drop in the major purchase index – an indicator of confidence in buying big ticket items – to minus 15 is also “troubling at this time of year, suggesting households are tightening their grip just as retailers move into a crucial trading period”.

Mr Bellamy said: “In such conditions, the Budget offers a timely chance to provide the clarity and reassurance that consumers are struggling to find on their own.”