UK consumer confidence continues to nosedive as cost-of-living crisis impacts big ticket purchases.
According to the latest GfK Consumer Confidence Index, overall figures saw a decrease of seven points to -38 in April. All five measures were down in comparison to the previous month.
The Major Purchase Index, which includes big ticket items such as furniture, has decreased by eight points to -32 in April; this is 20 points lower than it was this month 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.
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 Savings Index has gone down by eight points to +10 in April; this is 12 points lower than this time last year.
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.”