Consumer confidence is at an all-time low in mild of “acute concerns” concerning the hovering value of dwelling and bleak financial outlook, in response to new analysis.
GfK’s Consumer Confidence Barometer, which has run since 1974, supplies a month-to-month snapshot of the general public temper on essential financial points.
The group’s index decreased by three factors in August to minus 44, the bottom stage since information started. All 5 measures – which embrace confidence in private funds, normal financial outlook, and financial savings – have been down compared to the identical time final month.
The public’s forecast for the following 12 months can also be gloomy, recording a heavy fall in current months to a brand new low of minus 60.
“A sense of exasperation about the UK’s economy is the biggest driver of these findings,” mentioned Joe Staton, GfK’s consumer technique director.
“Our sub-measure on the general economy over the past year has decreased month-on-month since December 2021 – that’s eight months in a row. These findings point to a sense of capitulation, of financial events moving far beyond the control of ordinary people.
“With headline after headline revealing report inflation eroding family shopping for energy, the pressure on the private funds of many within the UK is alarming. Just making ends meet has turn out to be a nightmare and the disaster of confidence will solely worsen with the darkening days of autumn and the colder months of winter.”
This insecurity is mirrored in spending ranges.
Retail gross sales dipped by 0.1% in June 2022, lower than specialists had anticipated however persevering with a downward trajectory.
Non-food shops, corresponding to clothes and family items, which slumped by 4.7% and three.7% respectively, have been hit significantly onerous, in response to information launched final month from the Office of National Statistics.
Some had hoped that the Queen’s Platinum Jubilee would give retailers a serious enhance.
‘Storm clouds quick closing in’
“Confidence is low, as consumers are either already struggling with rising costs, or are fearing what’s looming on the horizon,” mentioned Linda Ellett, UK head of shopper markets, retail and leisure at KPMG.
“Those storm clouds are now fast closing in, with higher costs reducing the discretionary spending power of even more households this autumn and winter.
“So far this 12 months, retail gross sales have considerably defied the very low ranges of shopper confidence. But a widespread discount in spending capacity will result in drops in demand and altering shopping for behaviour, each of which can influence the excessive road and wider financial system. The scale of the demand discount stays unknown.”
Source: information.sky.com”