United Kingdom: Consumer confidence records worst reading since February in October
October 22, 2021
Consumer confidence came in at minus 17.0 in October, down from September's minus 13.0. October's result marked the weakest sentiment since February. As a result, the index remained entrenched below the 0-point threshold separating pessimism from optimism among consumers.
The fall came on the back of a deterioration in consumers' assessments of the general economic situation over the next 12 months. In addition, their sentiment regarding their financial situation over the next 12 months deteriorated, and consumers were also less willing to make major purchases.
Regarding October’s reading, Joe Staton, GfK’s client strategy director, stated:
“Against a backdrop of cheerless domestic news—fuel and food shortages, surging inflation squeezing household budgets, the likelihood of interest rate rises impacting the cost of borrowing, and climbing Covid rates—it is not surprising that consumers are feeling down-in-the mouth about the chilly winter months ahead. Worryingly for British retailing in the run-up to Christmas, there’s a further decline in the intention to make major purchases.”