But Major Purchase Index up for third month running
GfK’s long-running Consumer Confidence Index slipped by one point to -10 in October. Both measures for the General Economic Situation decreased, while the measure for Personal Financial Situation over the last 12 months and the Major Purchase Index increased. The score for Personal Financial situation over the next 12 months stayed the same.
Joe Staton, Head of Market Dynamics at GfK, says:
“It’s no surprise that the Overall Index Score continues to bump along in negative territory this month. As concerns about the wider economic prospects for the UK economy dampen our outlook, consumers are showing no real ‘get-up-and-go’. The tiny shift up a point in how we view our personal finances over the past year is counter-intuitive given rising living costs, an imminent interest rate rise, and the reality that we earn less in real terms in 2017 than in early 2006. Our enthusiasm for spending, as witnessed by the uptick in the Major Purchase Index, is more worrying than reassuring. Surging credit card use is fueling spending at the expense of our appetite for saving, which is growing at the slowest rate since the start of the 2008/2009 financial crisis. We are now entering the crucial Christmas trading season and it will be a testing time for retailers and consumers alike. Will consumers carry-on shopping or start to cut-back in the face of mounting pressure on our pockets?”
UK Consumer Confidence Measures – October 2017
The Overall Index Score in October is -10. Two of the five measures increased, two decreased and one remained the same.
Personal Financial Situation
The index measuring changes in personal finances during the last 12 months has increased one point this month to 0; this is three points lower than this time last year.
The forecast for personal finances over the next 12 months has stayed at +4 this month; this is two points lower than October 2016.
General Economic Situation
The measure for the General Economic Situation of the country during the last 12 months has decreased one point to -29; this is 10 points lower than October 2016.
Expectations for the General Economic Situation over the next 12 months have decreased two points this month to -26; this is nine points lower than this time last year.
Major Purchase Index
The Major Purchase Index has increased two points this month to +3; this is 11 points lower than October 2016.
The Savings Index has stayed at +3 in October; this is 12 points higher than October 2016.