Consumer confidence drops in October

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According to the latest figures from GfK on Friday, the overall index score slid one point to -21 this month

Consumer confidence in the UK dropped again in October, taking the score back down to the level last seen in March this year.

According to the latest figures from GfK on Friday, the overall index score slid one point to -21 this month. Three measures dropped and two rose compared with September’s announcement, it said.

The index measuring changes in personal finances during the last year was down one point at -10; but came in nine points better than October 2023, while the forecast for personal finances over the year was up one point at -2, six points higher than this time last year.

The report also found that the measure for the general economic situation of the country during the last year was down five points at -42; some 12 points higher than in October 2023.

Meanwhile, expectations for the general economic situation over the next 12 months dropped 1 point at -28; this was four points higher than a year ago.

The major purchase index added two points to -21 (13 points higher) while the savings index gained four points to +27; this was two points higher than October last year.

Neil Bellamy, consumer insights director at GfK, said: As the budget statement looms, consumers are in a despondent mood despite a drop in the headline rate of inflation. This month’s Consumer Confidence Barometer paints a picture of people holding their breath to see what’s in store for them on 30 October.

This month’s survey was conducted among a sample of 2,001 individuals between 1 and 15 October, 2024.

Linda Ellett, UK head of consumer, retail and leisure for KPMG, said: Consumer confidence continues to be influenced by three things: essential costs for households, job security in a toughening labour market, and perception about the economic climate on the horizon.

She said: KPMG research shows that half of those aged between 25 and 34 expect their financial security to improve in the next six months. Many are mortgage holders and declining rates are giving increased optimism that refixing or trackers may deliver less painful monthly bills than feared or planned for.

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