GfK’s long-running Consumer Confidence Index decreased two points to -33 for November, with three of the five measures dropping compared to the October 23rd announcement. The other two were unchanged.
Joe Staton, Client Strategy Director GfK, says:
“In our post-lockdown, pre-vaccine Index this month, we report another deterioration in overall consumer confidence to minus -33, a drop of two points.
"Although there is no movement in our views on the economy, people are clearly losing their nerve regarding their personal finances with scores for the last 12 months and the year to come sharply down by seven points and five points respectively.
"This will deal a blow to any future rebound, because bullish consumer spending fuels the UK economy and low confidence is the enemy of recovery. The second lockdown couldn’t have come at a worse time for the UK’s high-street retailers and it’s no surprise that our major purchase sub-measure is once again mired deep in negative territory.
"On all fronts, economic headwinds still outnumber tailwinds and consumers can be excused for showing little in the way of Christmas cheer at present.”
The Overall Index Score decreased two points to -33 for November. Three measures decreased in comparison to the October 23rd announcement and two were unchanged.
The index measuring changes in personal finances over the last 12 months is down seven points to -16; this is 16 points lower than November 2019.
The forecast for personal finances over the next 12 months is down five points this month at -5; this is six points lower than November 2019.
The measure for the general economic situation of the country during the last 12 months is unchanged at -67; this is 33 points lower than in November 2019.
Expectations for the general economic situation over the coming 12 months are also the same as last month at -50; this is 16 points lower than November 2019.
The Major Purchase Index has decreased by one point to -28 in November; this is 28 points lower than it was in November 2019.
The Savings Index has dropped three points to +11 in November; this is seven points lower than this time last year.
About the survey
Personal Financial Situation
This index is based on the following questions to consumers: ‘How has the financial situation of your household changed over the last 12 months?’
‘How do you expect the financial position of your household to change over the next 12 months?’ (a lot better – a little better – stay(ed) the same – a little worse – a lot worse)
General Economic Situation
This index is based on the following questions to consumers: ‘How do you think the general economic situation in this country has changed over the last 12 months?’
‘How do you expect the general economic situation in this country to develop over the next 12 months?’
(a lot better – a little better – stay(ed) the same – a little worse - a lot worse)
Major Purchase Index
This index is based on the following question to consumers: ‘In view of the general economic situation, do you think now is the right time for people to make major purchases such as furniture or electrical goods?’
(right time – neither right nor wrong time – wrong time)
This index is based on the following question to consumers: ‘In view of the general economic situation do you think now is?’ (a very good time to save – a fairly good time to save – not a good time to save – a very bad time to save)
(Commented on but not included in the Index Score)
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