Consumer confidence has slipped ahead of the festive season as energy, fuel and mortgage costs are rising due to uncertainties arising from the conflict in the Middle East.Thank you for reading this post, don't forget to subscribe!
GfK’s long-running consumer confidence index fell nine points to minus 30 in October, taking it back to levels seen in July last year.
The index’s key purchasing measure – an indicator of confidence in buying big-ticket items – saw its sharpest fall of 14 points, a significant turnaround from last month’s four-point rise, which will worry retailers ahead of Christmas. .
Confidence in personal finances over the next 12 months fell six points to minus eight, although this is 26 points higher than last year, while expectations for general economic conditions in the coming year fell eight points to minus 32 – 29 points Are. More than last October.
Joe Staton, consumer strategy director at GfK, said: “This sharp decline highlights that the cost-of-living crisis, and simply not having enough money to get by, is still exerting acute pressure on many consumers. Is.
“The acute headwinds of heating our homes, filling our petrol tanks, dealing with rising mortgage and rental rates, a slowing jobs market and now the uncertainties posed by the conflict in the Middle East are all contributing to this increase Restlessness.
“The volatility we are seeing in consumer confidence is certainly a sign of the gloomy economic mood and there is no immediate prospect of any improvement.”
Meanwhile, research from KPMG shows that a third of consumers will eat and drink less out of home this festive period, a third will spend less on Christmas groceries, and 39% will forego gifts due to the cost of living. There will be less budget.
Only 4% of those surveyed said they would have more money for gifts this Christmas, while only 7% said they would spend more on groceries.
Linda Ellet, head of UK retail and holiday consumer markets at KPMG, said: “Surprisingly, the higher cost of living appears to be taking its toll on Christmas spending for many families.
“Even for those who spend the same, the amount they receive may be less due to inflation.
“The result for retailers is continued competition for declining consumer spending and declining volumes, and the need to capture audiences through strong campaigns, well-targeted promotions and discounts and a great customer experience.”