GfK’s long-running Consumer Confidence Index decreased seven points to -38 in April. All five measures were down in comparison to the March 25th announcement.
Joe Staton, Client Strategy Director GfK, says: “The cost crunch is really hitting the pockets of UK consumers and the headline confidence score has dropped to a near historic low. The scores looking at the next 12 months for our personal finances at -26 and the general economy at -55 are worse than the 2008 financial crash. The personal finance score for the next year is also worse than the initial Covid shock in 2020. When rising inflation and interest rates meet low growth and declining incomes, consumers will understandably be extremely cautious about any spending. There’s clear evidence that Brits are thinking twice about shopping, as seen in the tumbling Major Purchase Index – now is not considered to be a good time to buy. This is dire news for consumer confidence and with little prospect of any economic relief on the horizon we can only forecast further falls in the Index for the year ahead.”
The Overall Index Score decreased seven points to -38 in March. All five measures were down in comparison to the March 25th announcement.
The index measuring changes in personal finances over the last 12 months has decreased six points to -19; this is 16 points worse than April 2021.
The forecast for personal finances over the next 12 months has decreased eight points to -26; this is 36 points lower than this time last year.
The measure for the general economic situation of the country during the last 12 months is down nine points at -60; this is two points lower than in April 2021.
Expectations for the general economic situation over the coming 12 months have dropped by six points to -55; this is 44 points lower than April 2021.
The Major Purchase Index has decreased by eight points to -32 in March; this is 20 points lower than this month last year
The Savings Index has gone down by eight points to +10 in April; this is 12 points lower than this time last year.
Download the data charts for March 2022
About the survey
This index is based on the following questions to consumers: ‘How has the financial situation of your household changed over the last 12 months?’
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?’
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?’
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)
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